What are Bonds and How They Work?

What are Bonds and How They Work?

The value of mutual funds, stocks, and other securities can fluctuate dramatically, but high-quality bonds offer a guaranteed rate of return. They also provide passive income, with low risk, and their value will typically increase at a time when other asset classes are declining.

Think of bonds like a loan in which you are the lender instead of the borrower. You agree to a fixed interest rate for a predetermined period and receive regular interest payments on your ‘loan.’ The principal amount is paid back at the end of this term, and the issuer’s debt to you is then cleared.

Bonds are protected against stock market volatility and are safer than many investments. The level of risk you are assuming is based on the rating given to the issuer. Your Carte Financial Advisor can help you identify which of the hundreds of available bonds will offer the best options for your needs.

Government of Canada bonds are no longer available, except for the 30-year Real Return Bond. The interest rate on this long-lived bond is adjusted semi-annually based on the rate of inflation. You can also buy municipal government bonds and corporate bonds.

19 thoughts on “What are Bonds and How They Work?

  1. safe dayz cheat says:

    501211 142323Oh my goodness! a great post dude. Thanks a lot Nevertheless I will probably be experiencing trouble with ur rss . Dont know why Not able to sign up for it. Is there everybody acquiring identical rss problem? Anybody who knows kindly respond. Thnkx 390253

  2. buy mescaline online says:

    585320 183543Hmm is anyone else experiencing difficulties with the images on this blog loading? Im trying to uncover out if its a difficulty on my finish or if its the blog. Any feed-back would be greatly appreciated. 883545

  3. marbo 9k says:

    448785 490325Hello there! I could have sworn Ive been to this blog before but following reading through some of the post I realized its new to me. Anyhow, Im surely pleased I discovered it and Ill be book-marking and checking back frequently! 322214

  4. massage outcall Bangkok says:

    130685 78423To your organization online business owner, releasing an important company may be the bread so butter inside of their opportunity, and choosing a fantastic child care company often indicates the specific between a victorious operation this is. how to start a daycare 390184

Leave a Reply

Your email address will not be published. Required fields are marked *