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How do bonds earn income

asked
User Zetarun
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1 Answer

7 votes

Answer:

The owner of the bond receives interest payments, known as the coupon, throughout the life of a bond, at the interest rate that was determined when it was issued.

Step-by-step explanation:

They are debt obligations, meaning that the investor loans a sum of money (the principal) to a company or a government for a set period of time, and in return receives a series of interest payments (the yield).

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User Probablykabari
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