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Bonds
Conclusion

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So now you've learned the basics of bonds. Not too complicated, was it? Here is a recap of what we discussed:

Bonds are just like IOUs. Buying a bond means you are lending out your money.
Bonds are also called fixed-income securities because the cash flow from them is fixed.
Stocks are equity; bonds are debt.
The key reason for purchasing bonds is to diversify your portfolio.
Issuers of bonds are governments and corporations.li>
A bond is characterized by its face value, coupon rate, maturity, and issuer.
Yield is the rate of return you get on a bond.
When price goes up, yield goes down and vice versa.
When interest rates rise, the price of bonds in the market falls and vice versa.
Bills, notes, and bonds are all fixed-income securities classified by maturity.
Government bonds are the safest, followed by municipal bonds, and then corporate bonds.
Bonds are not risk free. It's always possible--especially for corporate bonds--for the borrower to default on the debt payments.
High risk/high yield bonds are known as junk bonds.
You can purchase most bonds through a brokerage or bank. If you are a U.S. citizen you can buy through TreasuryDirect.
Brokers often don't charge a commission to buy bonds but instead markup the price.

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BondsConclusion

Bonds
Conclusion