Answer to Question #106107 in Macroeconomics for Maninder Gill

Question

what is Bond Yields

Answer 1

A bond is a security, which indicates that the investor has provided a loan to the issuer (company or state).

Future bond yields are fixed and predetermined. In addition, when issuing a bond, the issuer must indicate the maturity date - the date when the company or the state buys back the security from the investor for its face value. If the money is not paid on time, the investor has the right to sue the issuer.