What is a Government Bond?

What is a Government Bond?

The government bond market is huge - at the end of 2018 it was estimated to be in the region of 66 trillion dollars. In this video, Tim provides an introduction to government bonds and compares purchasing these from countries around the world.
Overview

A government bond is a bond issued by a sovereign government. Government bonds come in a variety of formats and maturities. They can be very short-term instruments (from as little as a one-month maturity) or go out to 30-year bonds or even longer. And they can come with fixed or floating-rate interest payments, and in an inflation-linked format. Government bonds are considered to be one of the most risk-free investments.

Key learning objectives:

  • Understand how a bond works

  • Explain why a government might issue debt

  • Know why bonds in certain countries are considered to be “risk-free”

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation

Related videos

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.