Community post
Bonds
Bonds are debt instruments designed to help either a company or the government raise capital. When you purchase a bond, you are
loaning money to the bond issuer. You exchange cash for the promise
of regular interest payments (with the exception of zero-coupon bonds) and the return of the face value of the bond at the time of
maturity. Zero-coupon bonds don’t pay regular interest; rather, they are purchased at a discount and mature at a higher face value.
Bonds are typically good investments for those who are seeking a steady cash flow or for those who don’t have an immediate need for
the principle amount invested. Bonds help diversify your portfolio by tempering the amount of risk you are taking with stocks
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