What are bonds?

[MoneyFanClub]

What are bonds?

Bonds are debt obligations issued by corporations and governments. They are for a fixed sum and pay interest. They have a maturity date, the date when the issuer must pay back the loan. Bonds carry a burden of risk of default and are rated for their safety by two organizations: Standard & Poors and Moody. S&P rates bonds from AAA to D, with AAA being the safest. Moody rates bonds from Aaa to C, with Aaa being the safest.

Government bonds include Treasury Bills, T-Notes and Treasury Bonds, obligations issued by federal government agencies such as Fannie Maes, Ginnie Maes and Sallie Maes, and savings bonds. In addition, state and local municipalities issue tax-free bonds. Corporate bonds are issued by businesses. There are also bond mutual funds.

For more details, please refer to Bond market - Wikipedia, the free encyclopedia

[Promoneyearn]

I believe it's a good time to invest but I'm no expert on bonds, it really depends on your investment strategy.

[teenwolf41]

Bonds = 401Ks and IRAs

Individual accounts = Stocks

Depends your age and risk tolerance and what account you are looking to get into.

[Aviz]

Municipal bonds offer somewhat safe investments, and tax free income, Bond prices vary in opposite connection to interest rates.

[Promoneyearn]

Anyone in this thread have investments in bonds ?? How have they done for you lately ??

[IntelligentInvestor]

As the markets seems to be recovering there's less appetite for them even UK gorernment gave up on printing them, and print money instead.

[lancehibner]

Bonds is one type of loan and debt security.A bond ise bond.

[Pallavi]

"A Bond is simply an 'IOU' in which an investor agrees to loan money to a company or government in exchange for a predetermined interest rate."

[CoryLayton]

Is there any assurance in bonds. or any problem occur in due course of time given in bond.

[Pallavi]

bonds are quite secured and less risky.