Fast and Finance

Bonds - Diving in Deeper

Patrick McCrindle Season 1 Episode 7

In our episode of debt, we had briefly touched on the definition of bonds and their creditworthiness. Just to go over it again and in laymen’s terms – a bond is simply a loan to a company or even the government, in which the investor will receive a fixed rate of return on that loan. So, in essence, bonds work by paying the “coupon rate,” which is that fixed interest payment that we talked about.