eli5 What are government bonds and how do they work?

Question

Additionally why are they considered safer than stocks.

In: 6

Answer 1

Government out of cash, dont want to print more, get cash from people for offering a piece of paper (the bond) X value of Y amount of years you hold it.

After 5, 10, or 15 etc. years you will get back that X amount of cash you paid for that piece of paper originally.

Whats the catch? Every month you get Z amount of cash EXTRA for holding that bond. The longer you’ve decided hold it, the bigger Z you get.

I could be totally wrong and you can delete this, but I recall it goes like this.