Wednesday, August 29, 2012

Investing in Bonds

  • Bonds give higher interest rates compared to short-term investments.
  • Bonds are less risky when compared to stocks.

  • Selling bonds before they're due, may result in a loss, known as a discount.
  • If the issuer of the bond declares bankruptcy, you may lose your money. Hence you must critically evaluate the credibility of the issuer of the bond, ensuring that he has the capability to repay the bond amount.

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