Who pays interest to the investors?

Interest is typically paid to investors by entities that borrow funds, such as corporations or government bodies. When investors purchase bonds or other debt instruments, they are essentially lending money to these entities in exchange for periodic interest payments. The borrower is responsible for paying the agreed-upon interest to the investors as compensation for the use of their funds. Additionally, interest can also be generated from savings accounts or other financial products offered by banks, which pay interest to account holders.