financial:
Bonds and interest rates explained A bond is a debt security, effectively a loan, where the issuer is obliged to pay interest (the coupon) to the principal at a future date of maturity. A government bond is a bond issued by a national government denominated in the country’s own currency.

The first ever government bond was issued by the English government in 1693 to raise money to fund a war against France.

Interest rates are the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. This can relate to individuals or large institutions.

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