Understanding Government Bonds

Front

What happens when you lend money to the government?

Back

Debt Instrument

Front

You buy a piece of Apple, so you become one of its owners

Back

Equity Instrument

Front

You agree to buy gold at today’s price, but only 3 months later.

Back

Derivative

Front

You buy a bond that later can be turned into company shares.

Back

Hybrid Instrument

Front

You enter a contract to sell a commodity at a predetermined price in the future.

Back

Futures Contract

Front

You enter an agreement to purchase an asset at a future date for a price agreed upon today.

Back

Forward Contract

Front

What do you receive when you buy a government bond?

Back

Interest Payments