Repayment and any interest depend on the contract and the issuer’s ability to pay. Selling before maturity may result in a loss.
Bond
In a nutshell
A bond is a debt security: an investor lends money to a government or company on terms set when the bond is issued.
On this page
Explained simply
A practical example
Hypothetical example: a CFA 10,000 bond with a 6% annual coupon provides for CFA 600 in interest each year, before tax.
Further reading
Source: Agence France Trésor — Glossary.
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What this means
CFA 10,000 face value with a 6% annual coupon provides for CFA 600 a year. Repayment depends on the contract and issuer.
Educational scenarios. Amounts and rates are fictional, not current market conditions.