Cryptocurrency Q&A
Do bonds pay you?
Do bonds pay you?
VoyagerSoul
Tue Jul 02 2024
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7 answers
2024
As a seasoned investor in the realm of cryptocurrency and finance, I'm often curious about the traditional investment vehicles as well. Could you elaborate on the fundamental question: Do bonds pay you? I understand that bonds are a debt instrument where investors lend money to an entity, typically a government or corporation, in return for periodic interest payments and the eventual repayment of the principal. But how do these payments work in practice? Do bondholders receive regular cash flows? What are the key factors that determine the amount and frequency of these payments? Clarifying these fundamentals would greatly assist in understanding the role of bonds in a diversified investment portfolio.
7 answers
IncheonBeautyBloom
Thu Jul 04 2024
Bonds are a popular investment vehicle that offer regular interest payments to investors.
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CharmedFantasy
Wed Jul 03 2024
Alternatively, investors can sell their bonds before maturity on the secondary market, subject to market prices and liquidity.
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SsamziegangSerenade
Wed Jul 03 2024
These interest payments, known as coupons, are distributed at a fixed rate set at the time of issuance.
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CryptoBaron
Wed Jul 03 2024
Typically, bonds pay interest semi-annually, meaning investors receive a payment every six months.
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Eleonora
Wed Jul 03 2024
Selling a bond before maturity allows investors to potentially lock in gains or avoid further losses, depending on the prevailing market conditions.
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