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1 year ago

What is a savings bond ?

Business

1 answer:

dalvyx [7]1 year ago

6 0

Saving Bond is a sort of debt security offered by the American government.

A savings bond is a zero-coupon bond, which means that it pays interest only when it is redeemed by the owner, in contrast to normal bonds that pay interest on a regular basis.

The bond is also nontransferrable, thus it can't be sold to someone else, which distinguishes it from more ordinary bonds.

The bond is issued by a government entity to generate money from the general public to finance its capital projects and other operations required to manage the economy.

When the government sells bonds, it is essentially borrowing money from the general public that it promises to repay at a future date. The government pays interest to its bondholders as payment for supplying it with funds.

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