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
They’re basically government loans. You buy a bond, and it costs X dollars which you pay the government for. It has a date printed on it, and on that date, you give it back get Y dollars back from the government. Obviously Y is the bigger number, but the date is several years in the future.
As a bond is basically an IOU from the government, it could be transferred to someone else, and conceivably you could find a stash of them. They’re only officially worth anything on or after their maturity date, but you could sell them to someone else who could hold onto them until said date if you really need cash and they were willing to take them.
From a citizen’s standpoint, it’s an investment that is very safe, but maybe not particularly high interest. From a government’s standpoint it’s a loan from your own citizens. If you wondered where all that government debt came from, quite a lot of it is here.
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