What were War Bonds?
In: Economics
A bond is a loan.
It has an agreed amount at a specified interest rate.
Simplistically speaking, There are two major types/classification of bonds.
Corporate and treasury.
Corporate would be bonds issued by companies.
Treasury would be bonds issued by a country.
Eg a country needs cash for whatever reason (say paying for a war today). They would do this as a way to raise the cash today.
So it issues a bond.
People with savings, buy these at the agreed upon price, and in return at the end of the term (say 1-30 years), they also get interest compounded per year.
The people are happy because they get a guaranteed interest return.
The country is happy because they can pay for whatever objective they wanted to accomplish which needed the cash today.
I am unsure if the “war bond” itself has any special clause within in, but I’m sure someone else can pick it up from here.
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