Yearly Interest Paying Bonds are bonds that make interest payments once a year. Such bonds may be suitable to investors who would like to receive interest once every year to manage their expenses.
Bonds are investment instruments that represent a loan made by the investor to a borrower like a corporate or government. The borrower borrows money for a stipulated period of time during which it pays interest to the investor. The loan (or principal) is returned to the investor at the end of the period which is denoted by the bond's maturity date.