What are the different types of bonds
What is a bond ? Buying a bond is like lending money to the issuer. The issuer promises to pay the lender a specified rate of interest till the bond matures. Also, you get your principal amount back it matures. The bond issuer might be a government, municipality, or corporation.
Types of bonds Corporate bonds : They are debt securities issued by either the public or private companies. They can be categorized in Investment grade and High-yield grade bonds based on their credit ratings. U.S. Treasury debt .
Security One should do their own due diligence before investing in any bonds. There are some tools which can help you with it. Corporate Bonds : The SEC tool EDGAR can help you determine if the corporate bonds are registered with SEC or not. Municipal Bonds : Similar for the municipal bonds SEC registration can be verified on EMMA.