You can buy corporate bonds – the bonds of companies
You can buy mortgages – the money that people owe on their houses or other buildings
In all cases you are giving an amount of money which will be paid back at a future date, or over a period of time
For example if you buy a 10 year government bond, you will pay the amount and it will be paid back to you 10 years later with the interest.
Example: 10 year bond, for 10,000 baht
Interest rate, 5% per year
So, in ten years the government will pay back to you the original 10,000 plus the 5%,
The amount you get should be about 16,288
(you add the 5% at the end of every year)
Trading Bonds
Lets say you don’t want to wait 10 years to get your money
Or you need your money NOW
You can sell your bond on the bond market, to other investors
But the price may be different from what you originally paid!