ELi5: How can somebody place money in a bond, and it will be worth more money in the future?
In: Economics
Purchasing a bond is the same as giving the government a loan (if we are discussing a government originated bond), which will be paid back to you in the future, with interest added. So, if I purchase $100 worth of bonds, the government gets my $100 and I get the assurance of the government paying me back on a particular date in the future, giving me back my original $100 plus the money I am owed from whatever the interest rate was.
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