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How much money can I make on a bond?

It depends on the company, government or agency that's issuing the bond, as well as what the bond's maturity is.

Generally, the less stable the issuer, the higher the interest rate it will pay. That's because the issuer has to make it worthwhile to investors, given the greater risk that a less-stable issuer will default on its bond payments. Treasury bills, issued by the U.S. government, are considered the safest of all.

Typically, the longer the bond's term, the higher the interest rate it will pay.

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