What is a Prize Bond?

A prize bond is a contract between the government and a citizen, wherein the government promises to pay a certain amount of money if and only if the citizen completes a certain task. For example, if you purchase a bond for a particular artwork, you could be entitled to a percentage of the amount you paid, based on the quality of the artwork.

You can use your prize bonds to buy things in the future. For example, if you buy a $200 bond for a particular artwork, you might be entitled to a percentage of the amount you paid, based on the quality of the artwork. If the artwork is valued at $200, you might be entitled to $20.

The difference between a prize and a loan is that you are paying back the loan with interest, whereas you are paying the prize to the owner of the asset.