Bond
A debt instrument issued by entities, promising periodic payments and principal return.
Detailed Description
Bond
What is a bond?
A bond is a fixed-income investment representing a loan made by an investor to a borrower, typically a corporation or government.
What are the main types of bonds?
The main types of bonds include government bonds, municipal bonds, corporate bonds, convertible bonds, and zero-coupon bonds.
What is the significance of bond ratings?
Bond ratings assess the creditworthiness of bond issuers, helping investors gauge the risk associated with a bond.
What factors influence the market price of a bond?
The market price of a bond is influenced by changes in interest rates, the issuer's creditworthiness, and overall market conditions.
How can investors invest in bonds?
Investors can invest in bonds through direct purchase, bond funds, or robo-advisors.