A type of loan you make to a government or company in exchange for regular interest payments and the return of the bond’s face value at maturity.
What to consider
Examine the bond’s credit rating and maturity to assess its risk.
Consider how current interest rate trends might affect your returns.
Diversify your bond investments to balance risk and reward.
Real world scenarios
For a secure addition to her portfolio, Grace invested in a bond from a well-known corporation, anticipating regular interest payments over several years.