How do bonds work? What are the types of bonds available for investment?

[You]

At its core, a bond is a debt security that functions like an IOU. When an investor purchases a bond, they are essentially lending money to the issuer (usually a government entity or a corporation). In return, the issuer agrees to pay regular interest payments (coupons) to the bondholder over a predetermined period. At the end of this period, known as the maturity date, the issuer repays the bondholder the principal amount initially invested.
There are five kinds of bonds which are mention below;

Government Bonds:

• Treasury Bonds
• Municipal Bonds

Corporate Bonds:

• Investment-Grade Bonds
• High-Yield Bonds

International Bonds:

• Sovereign Bonds
• Foreign Corporate Bonds
• Mortgage-Backed Securities (MBS)

Zero-Coupon Bonds

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[eldavis]

I thought there was something like government bonds before, am not sure though but i believe i must have seen or heard that before some where. Do lots of people invest in this these days?

 

[Bisolami]

At its core, a bond is a debt security that functions like an IOU. When an investor purchases a bond, they are essentially lending money to the issuer (usually a government entity or a corporation). In return, the issuer agrees to pay regular interest payments (coupons) to the bondholder over a predetermined period. At the end of this period, known as the maturity date, the issuer repays the bondholder the principal amount initially invested.
There are five kinds of bonds which are mention below;

Government Bonds:

• Treasury Bonds
• Municipal Bonds

Corporate Bonds:

• Investment-Grade Bonds
• High-Yield Bonds

International Bonds:

• Sovereign Bonds
• Foreign Corporate Bonds
• Mortgage-Backed Securities (MBS)

Zero-Coupon Bonds

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Well, I do not know anything about Bonds or even high yield bonds but I really dislike anything that has to do with high yield because they are always very risky and I'm not ready to take that risk

 

[Ratine]

For me l can say that l am still doing some research on that for that matter.

 

[nomad]

Bonds are just like certificate of deposit. You get your principal amount along with interest after maturity. Types of bonds available is specific to each country.

 

[Rubz]

Bonds are debt securities issued by borrowers to raise capital for investment. The different types of bonds available for investment includes; government bonds, corporate bonds, municipal bonds, convertible bonds, high yield bonds.