What is a bond? (vocabulary only)
Vocabulary for bond literacy and the SIM bonds desk / ETF stubs (FAKE MONEY) — not a bond broker. Bond ETF stubs (if shown on /mock/) are still FAKE MONEY practice, not cash bonds. Not investment advice.
What a bond is (plain language)
A bond is typically a loan: an issuer promises payments under stated terms. Investors talk about price, yield, coupon, and maturity. Bond ETFs wrap many bonds into a fund share that trades like a stock — different wrapper, different risks (stock vs ETF vs crypto).
This page names ideas. It does not recommend buying any bond or bond ETF.
Words to know
| Term | Plain meaning |
|---|---|
| Issuer | Who borrowed (government, company, etc.) |
| Coupon | Stated interest payments (if any) under the terms |
| Maturity | When principal is scheduled to be repaid |
| Yield | Return-like language linking price and payments — not a guarantee |
| Duration / rate sensitivity | Rough label for how prices may move when rates move (concept) |
| Credit risk | Chance the issuer does not pay as promised |
Price vs yield (intuition)
When people say yields went up, bond prices often moved the other way in the stories they tell — still not a trading rule. Always read the product (cash bond vs ETF vs fund).
Risk shapes (education)
- Rates, inflation expectations, and credit headlines can move bond prices.
- Bond ETFs can trade away from underlying basket values in stress.
- “Safe” is a marketing word — treasuries, corporates, and junk labels are different risk piles.
See What is risk · Diversification vs concentration.
Practice on Voltron
/mock/Bonds SIM desk / bond ETF stubs : FAKE MONEY only — not a cash-bond inventory or broker. Open bonds desk- Quest:
learn_bonds→ this page (literacy XP, never profit). - Cash bonds vs bond ETFs remain different wrappers — do not treat a stub as a CUSIP pick.
See Unlock path · Stock vs ETF vs crypto.
What this page will not do
- No CUSIP / ticker picks
- No “risk-free yield” claims
- No ladder recipes as advice
- No Associates CTAs on this domain
Related
- Learn index · Fees & spreads · Unlock path
- Practice: /mock/ · Desk doors: /desk/
Tutor …16k · Trading CEO fit CLEAR · Sentry CLEAR · FAKE MONEY education only.