00:01
So here we're talking about bonds, right? and a bond is just a promise to repay.
00:07
And let's think about what that looks like.
00:09
So you issue the bond, right? and now the lender is going to get money and the borrower pays money, right? then we have time and we have interest payments.
00:33
And then we have repayment, right? so the lender issues a bond, the lender collects money from the borrower, then the lender pays interest over time.
00:45
And then at the end of the bond term, the lender is going to repay.
00:48
So the correct answer here is generally only income, right? this is the correct one because, right? what you're thinking of is you are getting repayments of primarily interest from investing, right? your return is coming almost exclusively from interest payments, right? you can have capital gains, but these are less common, right? so you absolutely can have capital gains on bonds, but it's less common...