Baby Bond

  

Categories: Bonds

That'd be 00.007, where the shaken not stirred thing is...milk.

But no...it's the tiny little piece of paper you keep in your wallet. Just in case. (Cue the lights and sirens.)

Okay...not really. Baby bonds are small bonds worth less than a grand. If you don't have much to spend, baby bonds are your go-to option.

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Finance: What are Bonds?393 Views

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Finance a la shmoop what is a bond? well a bond is your word your promise your [Women shake hands]

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handshake your John Hancock on a contracted piece of paper your mortgage

00:14

your credit card debt yeah their bonds to your "I swear I'm not a deadbeat"

00:20

declaration... that's your bond right well bonds come [Man lying on a sofa]

00:24

in many complex flavors and compositions simply put bonds are loans aka debt you

00:32

borrow money or you promise or you you bond that

00:36

you'll pay it back when you borrow money the amount you borrow is called the

00:41

principal you pay rent on that amount borrowed and that rent is called [rent appears at bank]

00:47

interest to the entity loaning you the money that interest is called yield

00:52

thank you very much for the yield like if the lender rents you a grand for a

00:57

year and you pay them a thousand 80 bucks at year-end paying back the

01:02

principal and then the rent on the money while the lender will have had a yield [Yield of lender appears]

01:07

of 8% on the grand that they loaned you so that's a bond you borrow money you

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pay it back and if you don't the person who loaned you the dough well they [Person stamped with property of shmoop bank]

01:16

generally own your tuchus and yeah you know what Shakespeare said about bonds

01:20

yeah that's what he said so if you don't really know what you're doing don't do

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it...

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