The Intelligent Investor
What You Will Learn
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The Differences Between Bonds and Interest Rates
What bonds are is when either the government or a big large company want to borrow money so they can actually borrow money from you. When say a bond price is $100 or something and then you lend them $100, then you also get a return which they call the coupon rate. So if $100 bond, they might say a 6% coupon rate over 10 years. That means over 10 years, you're going to get $6 or $6 per year up until the end of that 10-year period. And then when that10-year period is done, you'll also get your $100 back. So you get 6% every year and the $100 back at the end
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