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Financial Markets > Introduction to Government Debt Securities > Interesting Content > Returns from Investing in Debt Securities
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  Returns from Investing in Debt Securities 
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Returns from investing in debt securities include:

  • Coupon interest: The issuer has to pay coupons, usually twice a year, to the bondholders. Upon maturity, the principal of face value will be paid along with the last coupon.
  • Discount: It is the difference between the face value and the sales price when securities are sold below their face value.
  • Capital gain or loss: Capital gain or loss may occur if a security is sold prior to its maturity.
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