Wednesday, July 31, 2013
Check out this is a short video on bonds produced by Investopedia!
Investors recieve a bond in exchange for money which serves as a loan to the bond issuer. When the bond matures, you will receive the face value of that bond. The face value is what you initally paid for the bond. The interest of a bond is known as the coupon. The investor is promised to recieve the full par at the maturity date with regular interest payments.