Elevating Savings and Investment Dynamics with Bond Investments
In simple terms, bonds are like IOUs. They show that someone owes money to someone else. Many groups, from businesses to governments, use bonds to get money for their projects and day-to-day activities.
When an organization or government needs money, whether it's for a new project, to keep things running, or to pay off old debts, they sell bonds to investors. Each bond says how much interest will be paid and when the money should be returned. This interest, called the "coupon," is part of what makes bonds attractive, and its rate is set when the bond is sold.