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Bond


Bonds are debt and are issued for a period of more than one year. The U.S.government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically. In real estate, an amount of money, often posted with the court, to guarantee against loss as a result of a possible claim. For example, if there is a lien against the property, the owner may post a bond and the lien is removed from the property and the parties argue over the money rather than the property.


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