How To Make Money On A Bond

How do I make money on a bond?

A bond is a loan to somebody. You are loaning your capital to them/ He way you make money from a bond is mainly that they're going to give you interest for the use of that money. That's the core way in which you are going to buy a bond. The price of that bond could also change over time. It's possible that you could buy a bond for less than it's going to mature, its ending value. You could also make some money on a bond through its capital appreciation, but the main way people think about making money in bonds is just its yield, the interest you are going to earn on that bond.