Quick Explanation of Bonds. Bonds are a promise to pay back money borrowed. For example Carr Is El Salvador and he wants to construct a new school. since he spent all his money on food he issues a bond asking for $100 to be paid back in 10 years @ $11 per year to construct the school. keyan buys that bond for $100 and will receive the $11 until he’s paid back. keyan sees carr lose his job and thinks he’s not going to paid back and sells the bond to super for $50

now Super will get the $11 payment. Then Carr’s bitcoin investment rips up and he has lots of money now. super sees this and sells the bond back to carr at $100. carr just bought back his “sovereign debt” because he came into money.

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