BOND
To understand "BOND" we have to understand a situation suppose you have $ 100 in your hand as a saving from your income .you want some earnings out of it .some financial institution want loan for their business .so you lend your $ 100 to that institution . In return he gave you a paper in which it is written about interest you will get per month, and date of maturity(date at which you will get your money back) etc. This paper that you get is called BOND.The financial institution are may be governaments,big corporates.so in brieffinanacial institution are suppliers of BOND and individual are demanders of bond.
HOW BOND PAPER LOOK LIKE?
This is how a bond paper look like .
extreme left side there written oficial logo it means logo of financial institutions who gave you bond paper.Then its written $100 it is the price which you lend that institutions,name of the bond means name of the issuer( your name),annual interest rate is fixed which is given continuely to you for example after every month,here signature and seal will be given by the finanacial institutions
