The name is Bond… James Bond.
But really, a bond is just a fancy kind of loan. The kicker is that instead of borrowing money like you would from a bank, you – the investor, are the one lending the money out.
As an investor you earn interest on the bond in the form of regular payments, or a large lump sum payment at the end of the lending period.
At the end of the bond’s life, the borrower has to pay the full amount back.
Bonds are a safe investment with relatively little risk. So if you are looking for an almost guaranteed investment, bonds might be for you.
To find out more, head over to Wall Street Survivor.