63.6k views
6 votes
In your own words, explain what a bond is and how you would make money from it.

User MisterNox
by
5.2k points

2 Answers

9 votes
There are two ways to make money by investing in bonds. The first is to hold those bonds until their maturity date and collect interest payments on them. Bond interest is usually paid twice a year. The second way to profit from bonds is to sell them at a price that's higher than what you pay initially.
User WoMo
by
4.5k points
14 votes
A bond is a contract between 2 companies. They borrow large amount of money and have to pay the person back.
User SamPutnam
by
5.0k points