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The definitions contained herein are for general information only and are not designed for use in connection with the interpretation of any insurance policy or annuity policy issued through Insurance Answer Center.
Life Insurance Glossary Terms  4 A B C D E F G H I J K L M N O P Q R S T U V W Y

Bond


A bond is a debt instrument issued by a company or government to finance a certain aspect of its operation. When you buy bonds, you essentially are lending money to the institution issuing the bond and you are entitled to receive interest on that loan. Depending on the bonds' coupon rates in relation to current interest rates, bonds can become more or less attractive to buyers and, as a result, may rise and fall in market value.

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