I don't understand how the bonds chart work.

Expert Solution

BOND

A bond is a fixed income instrument that represents a loan made by an investor to a borrower. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.

A bond is referred to as a fixed income instrument since bonds traditionally paid a fixed interest rate to debtholders. Variable or floating interest rates are also now quite common.

Governments and corporations commonly use bonds in order to borrow money. Governments need to fund roads, schools, dams or other infrastructure. The sudden expense of war may also demand the need to raise funds.

below shown is an example of bond chart , which shows the growth and fluctuations of bonds. it is used to easily understand the earnings from bonds.

merits ofthese bond charts ;-

summarize a large data set in visual form.
clarify trends better than do tables.
estimate key values at a glance.
permit a visual check of the accuracy and reasonableness of calculations.

ekkarill92 answered 2 years ago

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