Published: June 1, 1990

Financially Speaking

Bond. Issued to raise money, a bond represents a debt owed to the investor by a corporation, municipality, state, or the federal government. Bonds pay a specified rate of interest for a specified period of time, then pay back the entire debt. Bonds are rated by quality--the integrity or degree of solvency of the group issuing the bond--with socalled "junk bonds'' usually...