What Is Bond and Example

Federal government bonds. … Treasury bills. … Treasury notes. … Treasury bonds. … Zero-coupon bond. … Municipal bonds.

What are some examples of bonds?

• Federal government bonds. …
• Treasury bills. …
• Treasury notes. …
• Treasury bonds. …
• Zero-coupon bond. …
• Municipal bonds.

What is an example of a bond in economics?

Bond Pricing Example Say you purchase a bond for $1,000 (present value). The bond has a par value of $1,000, a coupon rate of 5%, and 10 years to maturity. The bond will return 5% ($50) per year. At the maturity date, you will be paid back the $1,000 par value.