Issuance
The issuer (government, corporation, etc.) issues a bond with details like interest rate and maturity date.
A bond is a debt security where an investor lends money to a government, municipality, or corporation in exchange for periodic interest payments and the return of the principal at maturity. Bonds provide predictable income and are typically lower-risk investments compared to stocks.
01
The issuer (government, corporation, etc.) issues a bond with details like interest rate and maturity date.
02
Investors buy the bond at face or market value.
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The issuer makes regular interest payments to the bondholder.
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The issuer repays the principal at maturity. Bonds can also be sold in the secondary market.
Regular interest payments provide a predictable income stream.
Bonds are generally considered safer than stocks, especially government bonds.
Bonds return the principal at maturity, making them suitable for conservative investors.
Bonds balance risk in a portfolio, especially during market volatility.
Municipal bonds may offer tax-exempt income.
Fixed interest rates provide stable returns, ideal for future planning.
Bonds come in various denominations, fitting different investment sizes.
Bonds provide stable income, important for retirement planning