I basically understand how a bond works, you give a company or government a certain amount of money and they will pay you interest on the bond for a certain amount of time, then after that time you get your money back.
So I was just looking at this website: http://ift.tt/1PMw71M So these are the yields for US treasury bonds. So under 1 month, this is for a 1 month bond obviously, does that mean that it will pay 0.52% over a year? I guess this just doesn't really make sense to me because the bond only lasts for a month, but it is a yearly rate. Do bonds pay out monthly? Also once the time for the bond is up, can you just leave the bond and continue to collect interest and just withdraw whenever, or as soon as the time is up, is it over and you would have to buy another bond?
Thanks!!!
Submitted January 07, 2017 at 02:36PM by ztizzlegaming http://ift.tt/2i4NOOA
