If you plan to hold your bond until maturity, these price swings don't matter—you’ll still get your interest and your principal back. 4. How to Buy Them
Buying bonds might seem intimidating compared to the high-energy world of stocks, but they are essentially just you make to an entity (like a government or a company) in exchange for regular interest payments. buying bonds for beginners
If you hold a bond paying 3% and new bonds start coming out at 5%, your 3% bond is less "valuable" to others, so its market price drops. If you plan to hold your bond until
This is the easiest way for beginners. Instead of buying one bond, you buy a "basket" of hundreds of bonds. This provides instant diversification and you can sell your shares anytime. 5. Why Bother? If you hold a bond paying 3% and
They pay you a fixed set of payments, known as the coupon , usually twice a year.