When you buy a bond, you are lending money to the issuer of that bond.
The issuer will pay back your principal at maturity and also make interest payments until then.
Bonds come in all shapes and sizes from corporate bonds to municipal bonds.
They can be issued by governments or companies, so both large and small investors have plenty of options when it comes to investing their money.
If you’re looking for a new way to grow your portfolio, consider adding bonds as an asset class! You can invest in a company’s bonds by buying them on the open market, or you could buy a mutual fund that invests mainly in corporate bond.
You may also want to consider municipal bonds for their lower risk and higher yields.
If you’re looking for some guidance as to where to start with your investments, check out this article about blue chip stocks!
The issuer will pay back your principal at maturity and make interest payments until then.
Bonds come in all shapes and sizes from government issues like treasury bills or Tbills to private loans made between two companies.
They are issued when one entity wants money but doesn’t have it readily available while another has more than enough funds set aside for investment purposes.