I really don’t understand and it’s getting embarrassing
In: 0
It’s a loan basically. The organization that sells the bonds (government or company typically) gets the money today, promised to pay the stipulated annual interest, and return the principal at the maturity date. So a bond might be sold in $1000 increments, paying 5% annual interest for 10 years. Than means for each $1000 increment bought, the loan buyer gets $50 each year for 10 years, and then gets their $1000 back.
Latest Answers