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Old 10-02-2007, 08:24 AM   #1
Moonliner
8/30/14 - Disneyland -10k or Bust.
 
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Quote:
Originally Posted by scaeagles View Post
Makes sense, but if the government issues a government bond to someone, do they have to put up the 5000 upfront into some account, or is it just a promissary note to give out the money to the bearer once it matures?
If you are talking normal Government bonds you purchase them and are guaranteed a specific rate when they mature. You get the security of a safe investment and the Gov get's the cash now. (Note with 'I' type bonds that rate is adjusted for inflation over the life of the bond)

If you are talking Hillary's then it appears you purchase them with hot air.
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