what are bonds ?

graphs display on an ipad

bonds are how countries , companies , municipalities borrow money from the market

they have an amount and a coupon rate and a maturity period

the coupon rate decides how much money you will get at the end of each year

the maturity period decides for how many years you will get that amount

at the end of maturity period , you get the entire amount that you invested back

let’s say that a bond has 10000 amount , 5% interest ( coupon rate ) and a period of 2 years

so , you will get 500 at the end of each year for 2 years

at the end of 2 years , you will get 10000 back ..

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