The secret backbone of the financial world 💰

Ever wondered how governments and some companies raise money? 💸

Often through 🥁bonds 🥁, which are essentially loans paid by investors like you!

When you buy a bond, you are lending money for a certain period of time 🏦

In return, you get a fixed amount of payments during that time period 🤑

At the end of the bond's term, the issuer pays you the original amount of money you lent 💸

So, ideally you get all of your money back plus more 🤑

Here’s an example:

1️⃣ You give your friend $100 🤝

2️⃣ Your friend pays you $2 every month and the full $100 in one year 📅

3️⃣ So, you’d get $100 plus $24 = $124 total! 🏦

But, it’s important to note that not every loan is fully repaid 🥲

There are three different types of bonds: corporate bonds, municipal bonds, and treasury bonds 🏦

Corporate bonds = loans to companies for various products and operations 🚀

Municipal bonds = loans to local governments for projects such as building schools or roads 🚧

Treasury bonds = loans to the federal government to fund their operations and debt obligations 🏛️

Bonds are typically low risk, but also low reward, even over a long period of time 🤔

You also need lots of money up front

Before you invest in bonds, be like a spy and do some field research before diving into an operation, or investment 🏃

Now you know all about bonds, just like James Bond. . . 🕵️

Test your knowledge

What is a bond?

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What are the three different types of bonds?

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Why is it important to do research before investing in bonds?

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What's next?

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