Glossary

A bond is a type of debt security issued by governments, municipalities, or corporations to raise capital. 💵

When you buy a bond, you're essentially lending money to the issuer in exchange for regular interest payments (called the coupon) and the return of your principal investment when the bond matures.

For example, if you buy a 10-year government bond with a face value of $1,000 and a 3% annual coupon, you'll receive $30 in interest payments each year, and after 10 years, you'll get your initial $1,000 investment back.

Fun fact: The bond market is actually larger than the stock market! 🌍 The global bond market was valued at around $128 trillion in 2020, while the global stock market was valued at roughly $95 trillion.