What are Fixed Interest and Bond Investments?

A bond or a fixed interest investment is an amount of money, invested for a given time period which produces a defined return.

A bond is set up so that there is a market to cash it up or buy into it between setup and maturity.

A more classical 'fixed interest investment', such as a retail bank deposit, is not tradable without penalty before it matures.

This article was contributed by an aus.invest reader named "Snoopy"