Bond investments provide a steady income stream and are considered less risky than stocks, making them an attractive option for many investors. Bonds are essentially loans that investors make to companies or governments, and in return, they receive regular interest payments and the repayment of the principal amount when the bond matures.
There are several ways to make money off bonds. The most common way is to hold them until maturity and collect the interest payments along the way. Another way to make money on bonds is to sell them for a profit if their market value has increased. This can happen if interest rates fall, as bond prices and interest rates move in opposite directions.