What does it mean that a bond has interest but no compound interest?

Bond is a lending tool, that is, the issuer issues bonds to investors, and investors get loan returns after buying bonds. The interest rate of bonds is the return that investors get from issuers and the fees that debtors need to pay. The "interest without compound interest" mentioned here means that the bond issuer only pays the principal and the interest of the last installment at maturity, unlike the compound interest method, which adds the calculated interest to the principal on each interest payment date.

Compared with compound interest, the bond interest-bearing method without compound interest has certain advantages. First of all, before the principal and interest expire, investors can focus on other investments, regardless of interest reinvestment. In addition, the bond interest-bearing method does not need compound interest, so it is relatively easier to calculate interest and taxes, which can reduce transaction costs. But at the same time, the total return of investors is relatively low under the bond interest-bearing mode without compound interest.

When investors consider buying bonds, it is very necessary to know the interest-bearing method of bonds. This information usually includes the coupon rate, interest calculation method and maturity date of the bond, which can be found in the bond prospectus, public bidding documents or the issuer's official website. Investors need to read these documents carefully to understand the risks and benefits of bonds in order to make wise investment decisions.