Just to answer your basic question a bond has an interest rate which is called the “yield” and it means if you purchase and hold the bond to “maturity” you will get back in total more money than you originally paid for the bond.
Bonds are the primary way large institutions (including governments) borrow money and also create the foundation for all other loans (because of how banking works)
Just to answer your basic question a bond has an interest rate which is called the “yield” and it means if you purchase and hold the bond to “maturity” you will get back in total more money than you originally paid for the bond.
Bonds are the primary way large institutions (including governments) borrow money and also create the foundation for all other loans (because of how banking works)
I appreciate you trying, but it seems like in order to explain some words you need to use 3 other words that need explanations haha
I have ecactly zero knowledge on banking or whatever
It can definitely be that way unfortunately…
There’s a lot of counterintuitive concepts in international finance and they kind of build on each other