Woodhaven Park Co. - $25 for Families

A bond is a document of title for a loan, issued not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body, normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.

This $25 6% Bond was printed by Broun-Green Co., N.Y. The fixed interest rate must be paid by the issuing company or entity, regardless of its financial performance. As a bondholder, the holder of this bond is essentially a creditor of the organization that issued the bond.

Bonds serve as a means for companies, governments, and other entities to raise funds by borrowing money from investors. The bond document outlines the terms of the loan, including the principal amount, interest rate, and repayment schedule. Bondholders, in turn, receive a steady stream of interest payments over the life of the bond, as well as the return of the principal upon maturity.

The issuance of bonds allows organizations to finance various projects, operations, or initiatives without relinquishing ownership or control, as would be the case with the sale of equity shares. Bonds provide a more flexible and predictable financing option compared to bank loans or other debt instruments.

From the investor's perspective, bonds offer a relatively stable and fixed return, typically lower than the potential gains from equity investments, but with less risk. Bonds are generally considered a more conservative investment option, appealing to individuals or institutions seeking to preserve capital and generate a steady income stream.

The bond market plays a crucial role in the global financial system, facilitating the flow of capital and providing a platform for borrowers to access funds and investors to allocate their resources. The diverse range of bond types, maturities, and credit qualities caters to the varying risk appetites and investment objectives of market participants.

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