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How to calculate an interest payment on a bond 
Learn what a bond is. 
Purchasing a bond can be thought of as purchasing debt, or, alternatively stated, loaning money to a company. The bond itself simply represents this debt.
Like any loaned money, a bond entitles you to receive interest payments at fixed intervals for a specific time frame, at the end of which you will receive your initial amount back.. Corporations and governments issue bonds to raise money to fund projects, or to finance their daily operations.