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Obligasi / Bonds


A Bond is like a loan, the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments or in the case of Government bonds to finance current expenditure. Bonds must be repaid at fixed intervals over a period of time.



Because of the interest rate risk, bonds with longer terms are more risky than bonds with shorter terms. If you plan to trade bonds, be sure you understand the interest rate risks involved and how holding long-term bonds increases that risk.