What Is A Retail Bond?
A bond is a tradeable security, issued by a borrower (the bond issuer) and representing
a formal agreement between the issuer and the lender (the bondholder) that the issuer
will repay to the lender the full amount borrowed plus interest over the lifetime
of the bond.
Bonds are therefore debt instruments which represent a series of cash flows payable
during a specified period of time. These cash flows are the principal amount, borrowed
by the issuer at the time of the bond’s issue and repaid to the investor at the
time of the bond’s redemption...