Today's bond market is a different animal, although it's still not as exciting as the stock market. According to Investopedia, a bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and US and foreign governments to finance a variety of projects and activities. Bonds, then, are long term, fixed income, debt securities. Fixed income because, unlike stocks, rates and prices do not fluctuate on a daily basis. Bonds' reputation as a stable, conservative, non-risky investment, has altered in recent years. Changes in how corporate bonds, in particular, are traded and the rising appeal of bond funds are factors contributing to risk. The Bonds Online Group uses market data from Reuters and Interactive Data, coupled with advertising from banks and financial information companies to populate its bond Web site.
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