I have no idea how they work
In: 2
If you get a loan then someone gives you $100 today and you pay them back $110 after a month.
If you get a bond then you give someone $100 today with the promise that they’ll give you back $120 after a month.
Bonds are most commonly bought from the federal government. The federal government will always pay back so it’s a very safe investment, but they often need a lot of money at certain times for things like wars or infrastructure, so they’ll sell bonds to raise money which individuals can buy.
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