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, a bond is the legal document a company or government gives you in return for you lending them money. You give the company a loan of $1000, and in return you get a bond for $1000 that “matures” after 5 years and pays you back your money plus interest when the maturity date is reached.
They used to issue the bonds like they were currency, and whoever held them could collect their value on demand – like currency. They were often referred to as bearer-bonds, as in they’re paid off to the bearer of the paper. Nowadays I believe all bonds are tracked on exchanges with ownership handled by a broker, like stocks.
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