as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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what is a bond?
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a bond is a fixed income investment where you lend a certain amount of money to either a company or a government for a fixed period of time. when the bond expires, the company or government will return your original capital plus interest. bonds are typically less risky than stocks, and provide investors with a reliable source of income. depending on the type of bond, the interest payments are typically paid on a regular schedule, such as annually, semi-annually, or quarterly. most bonds have a fixed maturity date, but there are some bonds (called “perpetual bonds”) which do not expire.
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