What are bonds?

[Jenny101]

hi,
there is assurance in bonds but this assurance depends on the type of investment plans.
Bye.

[Pallavi]

Hey Jenney,

I would say this associated with all type of investment

[Jenny101]

yea right...

[Consultant_Margaret]

Bonds, are an investment you can purchase where you essentially lend money to whoever issued the bond in exchange for future income in the form of interest payments. At the end of the life of the bond, you get your original investment back. The interest payments and principal (amount of your investment) are guaranteed by the company or government that issued the bonds.

Bonds are considered a less risky investment compared to stocks because the interest payments and principal are guaranteed by the issuer. Typically, “safer” bonds that are issued by the Government pay a lower interest rate, whereas “riskier” bonds issued by companies will pay a higher interest rate to compensate for the extra risk.

[Pallavi]

Originally Posted by Consultant_Margaret

Bonds, are an investment you can purchase where you essentially lend money to whoever issued the bond in exchange for future income in the form of interest payments. At the end of the life of the bond, you get your original investment back. The interest payments and principal (amount of your investment) are guaranteed by the company or government that issued the bonds.

Bonds are considered a less risky investment compared to stocks because the interest payments and principal are guaranteed by the issuer. Typically, “safer” bonds that are issued by the Government pay a lower interest rate, whereas “riskier” bonds issued by companies will pay a higher interest rate to compensate for the extra risk.

Hi there,

Nice definition copied from net.

Kidding! Infact its a easy explanation and i hope all newbies would learn from it. So are you a trader or investor?

[kimstar]

well bonds are the promise note that is written by the issuer to repay the investors at face or at par value you called, these bonds are issued to raise capital.........

[ricky028]

Thank you guys for sharing your views on bond investment. Generally people get into bond investing for the income bonds pay; since bonds pay more interest then they can get at the bank.