When you buy a bond, you are making what is known as a fixed-income investment. You are effectively lending money to the issuer of the bond, whether it is a corporation, a government, or a government agency. The issuer of the bond pays you a predetermined—or fixed—amount of interest on a scheduled basis, and then pays the principal of your investment back to you at the bond’s maturity date.
Bonds can be issued with either a fixed interest rate or a floating or variable interest rate. Investors typically buy bonds because they provide a predictable income stream.
The resources below provide information on the features and risks of investing in bonds.
Financial Industry Regulatory Authority (FINRA)
North American Securities Administrators Association (NASAA)
U.S. Securities and Exchange Commission (SEC)
Phone: (608) 266-2139