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Stocks, Bonds, & Derivatives: What They Actually Are and How They Actually Work (Foundational Knowledge for All Investment Decisions) RPF0021

Radical Personal Finance

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Fixed Income Bonds - What Are They?

Bonds can be on fixed interest rate payments, when re going to pay you five % per year. They can be based on floating interest rates. And so it's called a coupon payment, a five dollar, five % coupon that gets paid based upon the hundred dollar security. So for example, if i were a corporation, i could borrow money for you at one point eight % above the rate paid on Treasury bills.

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