4 Basic Things to Know About Bonds
Say you invest $5,000 in a six-year bond paying a coupon rate of five percent per year, semi-annually. Assuming you hold the bond to maturity, you will receive 12 coupon payments of $125 each, or a total of $1,500. The bond issuer also agrees to repay you the original sum loaned at the bond’s maturity date. … Read more