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[audioFiles]2017m5s/audio_ezfj_143_201705[/audioFiles] Bonds Bonds are d
[audioFiles]2017m5s/audio_ezfj_143_201705[/audioFiles] Bonds Bonds are d
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2024-09-14
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Bonds
Bonds are debt owed by a government or a company. / The holder of a bond is paid interest until the date when the bond matures. / Then the amount of the bond, its face value, is paid back. /
Investors can buy a new bond and keep it until it matures. / Or they can buy and sell existing bonds. / The return on a bond is called the yield. / Yields and prices of existing bonds can change as investors trade them. / Yields fall when investors seek the security of bonds / and are willing to pay higher prices. / Yields increase as prices fall. /
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