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Bond

Debt instrument paying fixed interest

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What is Bond?

Bond A fixed-income debt instrument where an investor loans money to an entity (government or corporation) for a defined period at a fixed or variable interest rate. Bond yields affect the risk-free rate used in options pricing models like Black-Scholes.

Complete definition

A fixed-income debt instrument where an investor loans money to an entity (government or corporation) for a defined period at a fixed or variable interest rate. Bond yields affect the risk-free rate used in options pricing models like Black-Scholes.

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