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A bond is a long-term debt instrument issued by a government or state enterprise to borrow funds from the public. The issuer is the debtor and each investor serves as a creditor.
The investor can forecast the total return of a debenture according to different investment conditions in order to invest appropriately.
A bond is the least risky type of investment because the issuer is a government or state enterprise.
Investors should understand the terms, conditions, potential returns and risks before investing.