Was playing Red Dead 2 and the gang comes into some Bonds. Apparently they’re worth money but idk how the gang gets a profit from it, or how bonds work in civilian life.
In: Economics
It’s a loan, with a different type of pay structure.
– I give you $100.
– You give me a $100 bond with 12% for a term of 1 year(or whatever).
– You pay me $1 each month as an interest payment.
– At the end of the 1 year, you give me my original $100 back, all at once.
Meanwhile, during the year, at any point, I can sell that bond back to you or someone else at an adjusted rate based on how much time is left on the term.
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