What are the real-world applications of bonds?

What are the real-world applications of bonds?

Bonds are used for various purposes, such as funding government projects, corporate financing, and investment diversification.

Can you explain how governments use bonds?

Governments issue bonds to raise funds for infrastructure, public services, and to manage national debt.

What about corporations? How do they benefit from bonds?

Corporations issue bonds to raise capital for expansion, research, and development without diluting ownership.

Are there different types of bonds for different applications?

Yes, there are various types of bonds, including municipal, corporate, and treasury bonds, each serving different needs.

How can individual investors use bonds in their portfolios?

Individual investors can use bonds to generate steady income, reduce portfolio volatility, and preserve capital.