What Are Bonds And How Do They Work?
What Are Bonds? Bonds are a type of investment that is similar to stock in that they are a “loan” to a company or government that pays one back at a specific interest rate. Like a stock, money invested in bonds can be used to fund the operations of whoever offers the bond. Bonds are typically considered a “safe” investment because the price of the bonds you buy don’t change over time and pay out a “fixed interest” rate regardless of whatever is going on in the economy at large. Unlike stocks that can fluctuate in terms of share price…