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Bonds & Interest RatesBond Risk

Bonds Can't Lose Money

In 2022, US bonds had one of their worst years on record

Bonds are the safe choice, everyone says. So how did the broad US bond market lose 13% in a single year?

You'll find out

  • How bad 2022 was for bonds
  • How a bank fell to the seesaw
  • What safe really means for a bond

Why it matters

Safe is a word people use about money without checking. Knowing what a bond can lose keeps it from surprising you.

About 3 min6 interactive slides · 5 questionsLesson 97 · Zone 11

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  2. 92BondsCoupon, Maturity, Face ValueThe three numbers on every bond
  3. 93History of BondsBuy a Bond, Win a WarTens of millions of Americans lent money for World War II
  4. 94BondsWho Borrows With BondsGovernments, cities and companies
  5. 95Interest RatesThe Bond SeesawWhen rates rise, existing bond prices fall
  6. 96PromisesA Bond Older Than AmericaA Dutch water-board bond from 1648 still pays interest to Yale today
  7. 98Sovereign DebtThe King Who Kept DefaultingPhilip II of Spain didn't pay his debts four times
  8. 99Risk PsychologyThe Price of CertaintyWe pay extra to make a risk disappear completely