Bond (finance)

A is a type of, under which the issuer  owes the holder  a , and is obliged – depending on the terms – to pay them  (i.e. the ) as well as to repay the principal at the. Bonds are usually issued when trade goods are placed when brought into a settlement with a. When anyone brings them into such a settlement, they must either purchase a to permit sale of the goods or place the goods in bond at a bonding house. s are one-time payments of generally 8–10% of the goods’ value. s are charged monthly and are typically 1–3% of goods’ value. Goods placed in bond are usually re-exported but may be taken out of bond on payment of the appropriate hawking fee. Goods are not always inspected, and bribery, undervaluing, and graft are common.

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