bond investing   

 

When you invest in a bond, you're giving a loan to the issuer. The issuer, such as a corporation or government, agrees to repay the loan with interest within an agreed amount of time. The yield on your bond investment, which is the amount you earn, is calculated by dividing the bond's annual income by its price. Until a bond matures, it can be bought or sold on the open market. If it changes hands before maturity, the price can fluctuate depending on interest rates at the time. When interest rates fall, bond prices rise and vice versa. The types of bonds offered for investments vary according to the issuer:
  • The federal government issues Treasury bonds to finance the national debt and government programs.
  • State and city governments issue municipal bonds to help pay for roads, schools, sewers and other public works projects.
  • Public and private corporations issue bonds to help their businesses grow eg. premium bonds.

courtesy .Bond investment information - Education and Guidance department of American Century Investments

 

Back to economics and finance

Home      

Copyright 2000.Indianchild.com. All rights reserved. No Content from our pages can be used/copied/downloaded for any use/publication/website in whatsoever manner without our written permission.  If you wish to spread the message of safe surfing and use any content from Indianchild.com, please indicate the source and give the article courtesy & link to www.Indianchild.com.