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A bond is a financial instrument that entitles the owner to repayment and interest.
Bonds are typically issued to raise funds by a government or a corporation. Doing so allows a large amount of money to borrowed from a large number of sources, without having to bargain with a single powerful financial company.
Bond issuers can often get better rates through bonds than through single-party lenders because bonds are often in high demand among investors. Bonds are typically seen as a low risk investment, especially when issued by a government or a large corporation.
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