What is bonds?
Answer:
Bonds are debt obligations - a promise to pay back a borrowed amount of money plus interest.
People want to buy debt because it is an investment. Investments usually offer positive returns with the trade-off being risk. In the case of debt, there is the risk that person borrowing will not pay the lender back.
In the big picture of investments, you can invest in almost anything in the world - from things, to businesses, to ideas and art. Debt is sought after because it is relatively easy to value, has a higher degree of getting paid back (i.e. safer) and is flexible enough to time the cash flows to when you need them. For example, if you need to pay for four yaers of university, you could invest in a bond that paid you eight times every six months at the specific amount that you need to pay off each semester's tuition.
stability! Know what your money is worth. you even get some money if the business goes under
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