Investing in Bonds

[Kane]

Bonds are one of the low-risk investments that you can try. You can either invest in government bonds or corporate bonds and receive a fixed interest rate on your investment. You will have to invest for a minimum of one year but if you need money before the term ends, you can use your bonds as collateral to get a loan.

 

[Niyi]

Investing in bonds is a way to lend money to a government, municipality, corporation, or other entity known as the issuer. In return for lending the money, the issuer promises to pay back the principal, or face value of the bond, at a set time in the future, as well as periodic interest payments.

Bond prices can be affected by changes in interest rates, creditworthiness of the issuer, and other factors.

 

[Lens]

Bond has low risk but it could make you lose your funds if you do not choose right. One of the most important thing that you wants to look out for before buying Bonds issued by companies is the credit ratings of such investment.