Bond, Yield, futures contract, Government bond

What is a bond?

A bond is a type of fixed income security where the investor lends money to a company or government for a fixed period. In return, the investor receives regular interest payments and the return of their principal when the bond matures.

What is yield?

Yield is the annual rate of return on a bond. It is calculated by dividing the annual interest payment by the current price of the bond.

What is a futures contract?

A futures contract is an agreement to buy or sell a certain amount of a commodity or financial instrument at a fixed price on a future date.

What is a government bond?

A government bond is a bond issued by a government. Government bonds are considered to be safe investments, as they are backed by the full faith and credit of the issuing government.