A bond paying interest regularly until it matures
A coupon bond pays interest at set intervals while you hold it and returns the face value at maturity. Most government and corporate bonds work this way, often paying twice a year. Receiving income along the way suits anyone who needs cash before maturity. A discount bond does the opposite, paying nothing until the gap at maturity.
A $1 million bond at 1% a year pays $5,000 every six months.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.