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
Basically they are loans that you give to the government, which slowly gain interest. Many are linked to one person and only they can redeem them, meaning that there’s no real reason to steal them. They generally ‘mature’ and reach double their original purchase price in twenty years, and can be held onto for up to 30 years while still earning more interest.
On the spectrum of using money to make money, they are pretty much the slowest, but safest investment. They’re not dependent on the stock market in any way- as long as the country still exists they’ll be fine and worth the amount you expect them to be worth.
Of course, if someone in a video game is selling them for money, they’re probably ‘bearer bonds’ which is the same idea, but not tied to a specific person. In that case, they’re just certificates that are redeemable for cash, and potentially a lot of it. Just money that is easier to transport and earns interest over time.
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