Journal Prompt 12/4 (Financial Friday)
- Due Dec 5, 2020 by 11:59am
- Points 100
- Submitting a text entry box
- Available Dec 4, 2020 at 8am - Dec 5, 2020 at 11:59am
Financial Friday- Bonds
Intro to Bonds video Links to an external site.
A bond is a fixed financial tool that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. They usually have low interest rates.
Describe the pros and cons of buying bonds. Also explain your "comfort level" or amount you feel safe to lend or borrow from including a family member and/friend.
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