Investing2 min read
BondGerman: Anleihe
A bond is a tradable debt security. You lend money to a government or company in exchange for contractual payments.
In plain language
Many bonds pay a coupon and repay their face value at maturity. The issuer can default, however. If you sell earlier, the proceeds depend on the market price. Rising market rates can push down existing bond prices.
Let’s make it concrete
A bond with €1,000 face value and a 3% annual coupon pays €30 per year, provided the issuer meets its obligations.
Simplified example for illustration.Worth understanding
A high coupon does not guarantee a high, safe return. Purchase price, maturity and default risk also matter.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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