Bond | Buying Guide

: Issued by companies to fund operations. These range from "investment-grade" bonds (higher credit quality) to "high-yield" or "junk" bonds, which offer higher interest rates to compensate for a greater risk of default.

To evaluate a bond investment effectively, you must understand its primary features: bond buying guide

: The amount the issuer agrees to pay back when the bond matures, typically in multiples of $1,000. : Issued by companies to fund operations

: The fixed annual interest rate the issuer pays the bondholder. typically in multiples of $1

: The actual return on your investment, which fluctuates based on the price you paid for the bond relative to its coupon rate. Common Types of Bonds