Before you start making bonds, you have to understand what you have to invest. Do not understand these things You may buy the wrong bond on the wrong maturity date.
The three most important things to consider when buying a bond include the par value, the maturity date, and the coupon rate.
The face value of a bond is the amount you receive when the bond reaches its maturity date. In other words, the bond matures to the initial investment.
The maturity date is, of course, the date when the bond reaches its full cost. On this day, in addition to your initial investment, you will receive the interest earned by your money.
Before they reach their maturity, companies and state and municipal bonds, companies and issuing governments, along with the interest it has earned so far, can return your initial investment Federal bonds can not be called " '
Coupon rate is the interest rate you receive when a bond reaches maturity. This number is written as a percentage and you need to use other information to find out what your interests are. Bonds that have a $ 2000 par value until they reach maturity, a 5% coupon rate can earn $ 100 a year.
Because bonds are not issued by banks, many people do not understand how to buy. There are two ways in which this can be done.
You can use a broker or broker to make a purchase for you. If you use a securities company, you will be charged a fee for the above possibilities. If you want to use a broker, shop around for the lowest fee!
Buying directly through the government is not as difficult as it used to be. You can buy bonds and all of your bonds will be easily accessible to you, in one account This can avoid the use of brokers and brokers You
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