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Bond Investing

Bond investing is the practice of buying and holding bonds as a way to earn a return on investment. A bond is a type of debt security that is issued by a government or a corporation, and it represents a loan that the issuer makes to the bondholder. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to bond investing.

Basis Points (bps): What They Are and How to Convert Them Thumbnail

Basis Points (bps): What They Are and How to Convert Them

Andrew Latham

What Are I Bonds? Rates, Limits, and How to Buy Them Thumbnail

What Are I Bonds? Rates, Limits, and How to Buy Them

Andrew Latham

What Is a Mutual Fund? Definition, Types, Fees, and How It Works Thumbnail

What Is a Mutual Fund? Definition, Types, Fees, and How It Works

Andrew Latham

What Is an Index Fund? Definition, Types, and How They Work Thumbnail

What Is an Index Fund? Definition, Types, and How They Work

Andrew Latham

ETF (Exchange-Traded Fund): Definition, Types, and How to Invest Thumbnail

ETF (Exchange-Traded Fund): Definition, Types, and How to Invest

Andrew Latham

What Is a Bond? Definition, Types, and How Bonds Work Thumbnail

What Is a Bond? Definition, Types, and How Bonds Work

Andrew Latham

Holding Period Return: What It Is and How To Calculate It Thumbnail

Holding Period Return: What It Is and How To Calculate It

SuperMoney Team

Convexity: What It Is, Why It Matters and How to Calculate Thumbnail

Convexity: What It Is, Why It Matters and How to Calculate

SuperMoney Team

Fixed-Income Securities: What They Are and How They Work Thumbnail

Fixed-Income Securities: What They Are and How They Work

SuperMoney Team

Bond Valuation: Definition and Methods Thumbnail

Bond Valuation: Definition and Methods

SuperMoney Team

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Learn About Bond Investing

Thumbnail for Blog Article: Warren Buffett's Guide to Investing for Retirement

Warren Buffett's Guide to Investing for Retirement

Andrew Latham

Thumbnail for Blog Article: 8 Alternatives to Savings Accounts

8 Alternatives to Savings Accounts

Benjamin Locke

Thumbnail for Blog Article: Money Market Funds vs. Short-Term Bonds: Which Investment is Right for You?

Money Market Funds vs. Short-Term Bonds: Which Investment is Right for You?

SuperMoney Team

Thumbnail for Blog Article: Guide To Income Producing Assets

Guide To Income Producing Assets

Benjamin Locke

Thumbnail for Blog Article: What Is A Savings Bond Calculator And How It Works

What Is A Savings Bond Calculator And How It Works

Benjamin Locke

Thumbnail for Blog Article: Is There A Bond Market Crash Coming? Things To Watch Out For

Is There A Bond Market Crash Coming? Things To Watch Out For

Benjamin Locke

About Bond Investing

Bond investing is the practice of buying and holding bonds as a way to earn a return on investment. A bond is a type of debt security that is issued by a government or a corporation, and it represents a loan that the issuer makes to the bondholder. When an investor buys a bond, they are effectively lending money to the issuer, and the issuer agrees to pay the investor a fixed rate of interest over the life of the bond. At the end of the bond's term, the issuer also agrees to repay the principal amount of the loan to the investor. Bond investing can provide a steady stream of income to investors, and it can be an attractive option for investors who are looking for a relatively low-risk investment.