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What is Obligation (Bond)
Obligation (Bond) is a debt security, it is a long-term bond issued by a company, local authorities or state. The bonds issuance is used to obtain additional sources of funding for the enterprise, to cover the state budget deficit or to finance investments and projects.

Obligation (Bond) is a debt security, it is a long-term bond issued by a company, local authorities or state. The bonds issuance is used to obtain additional sources of funding for the enterprise, to cover the state budget deficit or to finance investments and projects.

Obligations (bonds) in practice: An obligation (bond) can be used both by the issuer to obtain additional funds. and, on the contrary as a financial investment, if we want to evaluate the available financial resources. Investing in bonds is a relatively safe type of investment.

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Last update: 19.09.2016

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