Search
Previous Menu
Bond
A debt security where an investor loans money to a borrower for interest and the return of the principal. They are low-risk but offer lower returns.
More Details
A bond is a type of debt security that allows an investor to lend money to a government, municipality, or corporation in exchange for interest payments over a specified period of time. At the end of the bond's term, the issuer repays the principal amount of the loan to the investor.
Example
If you decide to invest in a 10-year U.S. Treasury bond, the U.S. government will issue the bond and promise to pay you a fixed amount of interest every year for 10 years. At the end of the 10-year term, the government will repay the principal amount of the loan to you.
Ready to Own the Home of Your Dreams?
Join now to get access to the competitive rates, member-friendly loan products, and educational resources you need to secure an exceptional financial future.
