Bonds

Bonds, a fixed-income instrument, are used by governments or companies to raise money by borrowing from investors. Bonds are typically issued to raise funds for specific projects. In return, the bond issuer promises to pay back the investment, with interest, over a certain period. From an investor’s viewpoint, bonds provide two potential benefits when they are part of an investment portfolio. They give an income stream and protect from the volatility seen by owning stocks.

Learning Outcomes

At the end of the course, you will be able to understand the following:

• What is a Bond?
• Bonds Market.
• Features of a Bond.
• Benefits of Bond Investing.
• Different Types of Bonds.
• Risks in Bonds.
• Buying and Selling Bonds.

What is a Bond?

Bonds are a means of financing in which a company borrows money by selling bond securities to investors. The bonds represent a loan to the issuing company. The company promises to pay the investor a specific interest every period by selling the bond until the bond matures.