When you buy a bond, you earn money primarily through the interest payments, known as coupon payments, that the bond issuer makes to you over its term. These payments are typically made semiannually and provide a predictable income stream. Additionally, if you hold the bond until maturity, you will receive the principal amount back, which can also contribute to your overall return. The bond's market value can fluctuate, potentially allowing for capital gains if sold before maturity.
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