Tip of the Day: Lets talk bonds. When you buy a bond, you’re lending your money to a company or a government (the bond issuer) for a set period of time (the term). The term can be anywhere from a year or less to as long as 30 years. In return, the issuer pays you interest. On the date the bond becomes due (the maturity date), the issuer is supposed to pay back the face value of the bond to you in full. The two ways you can make money on bonds are interest accrued for the duration you held the bond and if you sold the bond for a higher price than you paid for it.
Posted on: Sun, 03 Nov 2013 14:00:00 +0000
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