FYInance

Posts Tagged ‘bond’

In order to cash a savings bond at a bank, a person will have to go to a federal reserve board, and they will have to provide proof of their identity. Find out how to sell savings bonds online with help from a personal asset manager in this free video on the bond market and money management. Expert: Roger Groh Bio: Roger Groh is the founder of Groh Asset Management. Filmmaker: Bing Hu

If you're new to FYInance, we're going to make it worth your while to subscribe to our FYInance RSS feed. It will keep you up to date, on your terms!

Today we are going to discuss what bonds are. Let’s start with the basics. Some of you may know bonds as fixed income securities or debt securities because bonds have fixed interest payments.

So, what is a bond?

A bond is another type of investment that you can put your money in (just as you would with stocks). When you buy a bond, you are effectively loaning your money to the bond issuer. In return, the issuer promises to pay you back plus interest payments regularly. Basically, when an (bond) investor loans money to the bond issuer, the issuer must make regular payments of interest for the use of the funds.

Who can issue a bond?

Corporations, municipalities and the US governments are the issuers of bonds. They issue different types of bonds. When a corporation issues a bond, the bond is classified as a corporate bond, for example. Bond issuers issue bonds to raise working capital or funds.

There are many aspects of bonds and bond investing to discuss. We will discuss more about bonds later. For now, if you want to learn about bonds, you can go to http://money.cnn.com, http://www.bloomberg.com, and http://all-about-bonds.info. Next time we discuss bonds we can talk about bond interests, maturities and other important factors you should know when investing in bonds.