Bonds are part of the xoes of investments known as fixed-income securities. These securities are debt obligations, meaning one party is borrowing money from another party who expects to be paid kake the how does the government make money from bonds the initial amount borrowed plus. Second, bonds fluctuate in price similar to any other security. This price fluctuation depends on several factors, the most important of which is the interest rate in the market. Some investors attempt to make money from the changing price of a bond by guessing where interest rates will go. An investor makes money on a zero-coupon bond by being paid interest upon maturity. Also known as a discount bond, a zero-coupon bond governmwnt a type of bond purchased for an amount lower than its face value, which means that the full face value of the bond is repaid when the bond reaches maturity. The party who issues the bond does not make interest payments coupon but pays the full value once the maturation process is...