How Do Bonds Work?

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The topic is Bonds: Government Bonds. Where is a safe place to put your money that will result in steady growth? You have to defeat the nefarious forces of inflation, after all, and loaning your money to the government’s always been a safe option.

While you can put some of your trust in steadfast bonds, keep in mind that today’s government treasury bonds are nothing like they were in the heyday of the 1980s, when they reached an all-time high interest rate!

Though now their rates have normalized, the long term nature of bonds (usually 10 years) creates an interesting market for trading bonds at different rates. To learn more about bonds, interest rates or inflation, surf over to FinLitTV.com or click Subscribe for more FLiCs.

Comments

Nayeli Sanchez says:

Thank you! This made things so much clearer :)

Nico Burgerman says:

Sweet video!

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