1. What is a bond?
2. Who issues bonds?
3. Advantages and risks of investing in bonds
4. How to profit from investing in bonds?
5. How to understand bond yields?
6. What factors influence bond returns?
7. Other four factors affecting bond returns
8. How to buy bonds? Where to buy bonds?
9. Who is suitable for investing in bonds?
10. Introduction to low-risk individual bonds
11. Common Q&A
1. What is a bond?
A bond is a type of promissory note. Bond issuers borrow money from investors to raise funds, promising to pay fixed interest periodically before maturity, and to repay the principal amount indicated on the face of the bond in full upon maturity. This promissory note is what we call a bond.
2. Who issues bonds?
Bonds are primarily issued by national governments and large corporations. The funds raised from issuing bonds are used to expand the basic infrastructure of the national government or to invest in the capital development of the company.
For example, if you purchase bonds issued by government A, government A can then use these funds for infrastructure development. Holding this bond (promissory note), government A will pay you interest regularly during the period, and at the end of the term, they will also repay the principal amount you lent.
Therefore, bonds can be seen as an investment tool that allows for 'stable interest income'.