Investing savings in bonds

Investing in bonds is relatively safe way to multiply your capital. Bonds are form of a loan taken out by organ, institution or business unit issuing them. It is thanks to that the bondholder receives a constant percentage profit. When buying bonds, we immediately decide for how long we want make loans to the issuer. The bonds are appropriate, obliging the institution what entered them on the market for cyclical payment of a percentage of the value of the lender's bonds, and after ending of the credit period - the entire obligation financial, which confirms Roman Ziemian.

In the economy, bonds perform pair significant functions: loan, investment, monetary, circulation. The loan function means that that the issuer receives required for trading and development funds. Mission investment refers to making it possible investing by the bondholder the surplus money and multiplying own capital. We understand the payment function as possibility transfer of the ownership of the bond from holder to its creditor. In this way, bonds be able to equal the valid currency. The circulation function allows transfer property of the bond from one person to another, together with all obligations on the site of the issuer.