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19 December, 19:14

Other than interest payments, what is another way that you can make money buying bonds

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  1. 19 December, 21:07
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    Capital Gain

    Explanation:

    The second way of making money from buying bonds is to sell them at a higher price than you bought them. Like other securities, bond prices fluctuate due to several factors. If the company that sold you the bold is performing well, the bonds will gain in value. Selling the bonds through a broker will result in profits.

    For example, If you bought bonds worth $5000 at face value, it means you paid $5000 for them. If the market value increase to $6000, selling the bonds will make you a profit of $1000
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