Education·19 April 2026·4 min read
What is a bond — the loan where you are the bank
When you buy a bond, you lend money to a state or company and receive interest. In short, how it works.
A bond is a loan you give: you buy a paper by which a state or company promises to return your money on a fixed date, plus interest. In effect, you become the lender.
Safe, but not riskless
Government bonds are among the safest investments, but even they aren't riskless — if the borrower goes bankrupt, you can lose. Always the same question: is there someone able to pay it back?
