“Compound interest is the eighth wonder of the world” ~ Albert Einstein

One of the major benefits of owning bonds is the earning of interest everyday.

As you have a regular coupon (payout) schedule you know exactly how much your bonds have accrued in income.

It also means every day you’re a bondholder you are earning money!

I’ve attached a graph of an existing bond with its payment life cycle. It depicts each day the interest accrued until the coupon date where it is paid out in full to you the bondholder! You will receive every coupon till the last coupon on the maturity day where you will also get the facevalue of the bond.

What is very apparent is that time has a massive influence on the amount of money you receive. The sooner you get invested the sooner you can compound it!

“He who understands it, earns it … he who doesn’t … pays it.” ~ Albert Einstein