Investments and Investing: BONDS

Here are my notes for BONDS...

Bonds are issued by the government and large corporations. Its purpose is to raise fund for specific projects.

Bonds offer a fixed of amount of interest (which is called the coupon rate) for a fixed period of time (this is the maturity date or due date) usually for a long period of time.

Note that at maturity date, the exact amount of the bond will be repaid to you and the interest payment stops.

More, interest rates on bonds are normally higher than the rates paid the banks.

Tips:
If you are nearing the or are in retirement years and your goal is "never or do not lose money," then a bond from a stable government is the best investment.