In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. Bonds can be in mutual funds or can be in private investing where a person would give a loan to a company or the government.
You kinda lost me at the point where started talking about bonds being tradable while keeping its face value. I mean, why would anyone pay money to buy something that is “worth less”? How are the second, third and fourth level bond buyers supposed to make profits? How can they justify such trades?
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. Bonds can be in mutual funds or can be in private investing where a person would give a loan to a company or the government.
Oh my gosh thank you so much!!
I’m currently learning about bonds in my finance class, and this video helped me straighten things out!
Thanks 👍
You kinda lost me at the point where started talking about bonds being tradable while keeping its face value. I mean, why would anyone pay money to buy something that is “worth less”? How are the second, third and fourth level bond buyers supposed to make profits? How can they justify such trades?