A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond's maturity, for redemption of the principal. Like a stock, a bond is a type of investment, but unlike a stock, a bond has a definite, but not necessarily fixed, yield. Some bonds have a feature known as a call, which gives the borrower an option to pay off the principal of the bond before its maturity, the date when the bond is due to be redeemed. (See municipal bonds and Treasury bills.)
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