Financial Poise


  • January 12, 2022
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The simplest definition of a bond is that it is an IOU from a borrower to a lender. Stated differently, the issuer of a bond is a borrower and the party to whom the bond is issued is a creditor, in the context of a loan made by the lender to the borrower. The bond is the document that evidences the loan. Most bonds pay a fixed rate of interest to the holder of the bond.