Think You Know All About Municipal Bonds? Think Again
Ignore the temptation for any bad James Bond references, the key function of a bond is that you’re lending money to a company for an agreed term, and getting an agreed rate of return. This is called the coupon rate and is based on the original capital invested. The key is figuring out how much of your investment portfolio should be in stocks vs bonds.
If you’re interested in investing in bonds, which type should you choose? Investing in bonds can take many forms, but the key to understanding the bond markets is that when you buy a bond, you are lending someone money, be it a company or a government.
The main advantage of bond investing is that they’re rated in their risks. The bond has a term where it pays off (like 10 years) at which point you get your initial investment back. Bonds will pay a set amount […]
Original post by mikejohns