The giant IOU machine
Uncle Sam's piggy bank
Corporate cash and municipal magic
The yield curve and the economic crystal ball
diego87 Issue IOUs to investors to learn how the US bond market funds public projects.
diego87 The US bond market began during the Revolutionary War to fund George Washington’s army.
What happens to the original cash amount (principal) when a bond reaches its maturity date?
diego87 The US Bond Market
You buy a bond to build a brand-new highway (yeah-yeah!) / And they pay you back with interest over time (oh-oh!)
diego87 Bonds used to be beautiful, hand-engraved paper certificates with physical coupons that investors literally clipped off to cash in.
In what year did the US issue its very first war bonds to fund the Revolutionary War?
Clipping coupons: The phrase 'clipping coupons' comes from the 1800s when bond investors physically cut paper tabs off bond certificates to collect their cash interest.
Which rating represents the safest, lowest-risk bond according to major credit agencies?
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest. These financial instruments fund essential public infrastructure projects such as local schools and major highways.