Bonds are issued by a form of borrowing and lending to a very secure Governments and companies. Bonds are very similar to cash in so far as they are easily turned to cash and as such are considered to be liquid. They can be sold whenever you need to generate cash in most instances.

They come in two main forms:

  • Bonds with fixed level of returns often issued by the National Treasury Agency on behalf of the government 
  • Bond that do not provide a fixed level of return. For example an indexed linked bond that provides a return in line with inflation 
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