SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-invest-bond-iou

What is a bond?

A debt security, like an IOU.

Start playing free

  1. A debt security, like an IOU ✔
  2. A share of ownership
  3. A savings account

Why: When you buy a bond you lend money to the issuer. The issuer promises to pay a specified rate of interest during the life of the bond.

Huh, didn't know that: At maturity the issuer repays the principal, also called face or par value.

The dad joke
What coin doubles in value when half is deducted? A half dollar.
Like this card?
Play the game

References

Answer: A debt security, like an IOU. When you buy a bond you lend money to the issuer. The issuer promises to pay a specified rate of interest during the life of the bond.

  1. Investor.gov: Bonds www.investor.gov/introduction-investing/investing-basics/investment-products/bonds-or-fixed-income-products/bonds
    A bond is a debt security, like an IOU.
    Checked 2026-10-10.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game

MoneyYou owe 18 percent on a credit card and want to invest. What is generally better?MoneyWhat is the main reason to build an emergency fund?MoneyCompound interest is interest paid on what?

That's stuff everyone should know.