What are bonds? They are a Government IOU that guarantees the buying power of money that you put into the bonds. For example, if you buy a $1000 bond for 10 years, the Government promises that the $1000 will have the same exact same buying power as before, beating inflation! However, this will keep your money at the same rate as inflation, so you really don't gain much money from the bond. But, it does keep up with inflation so you can't really lose your money, but you don't really gain much either. It only guarantees your money will be safe and will grow at whatever rate inflation is so that you can still get what's worth of your money.
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