What Is A Bond

This lesson focuses on bonds and their use in financing for both corporations and governments. The lesson explains how bonds work, using the example of a corporation, and how investors can make money from them. It also covers the risks associated with bonds, such as changes in interest rates and the possibility of the issuing company failing. The lesson highlights the benefits of investing in bonds, especially when interest rates are low, and how they can provide a more stable and predictable return compared to stocks. The lesson concludes by emphasising the importance of understanding both investing in stocks and bonds for successful investing, as demonstrated by Warren Buffet’s approach.