High Interest Investment

What Should Know Before Deciding Bond Investment?

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2. When you invest in a bond, you buy the debt of its issuer, which might be the U.S. government or an affiliated entity, a state or city government or borrowing authority, or a corporation. Every bond has certain characteristics: - A definite maturity date when the bond issuer promises to repay the bondholder who owns the security at the time. - A promise to pay taxable or tax-exempt interest at a stated “coupon” rate in defined intervals over the life of a bond. - A yield, or return on investment, which is a function of the bond’s coupon rate and the price the investor pays, which may be more or less than the bond’s face value depending on a variety of factors. - A credit rating indicates the likelihood that the issuer will be able to repay its debt. You can get more information about bond investment by check on the source link below.