Àwọn Àmì-ìwé Tí A Fẹ̀

Imagine you lend money to the government, and they promise to pay you interest every year. That’s a bond. A bond is basically an IOU, which means I owe you. You lend money to the issuer, the issuer pays you interest, and returns your money at the end. You invest one thousand dollars at five percent per year, and you earn fifty dollars per year.