Blog #invest in bonds

As most people are aware, the economy is currently not at its strongest. Does that mean it is a bad time to invest in stocks and shares? The stock markets don’t exactly appear to be getting stronger, and some are predicting gloom and doom for some time yet. This prompts the question of whether it is too risky to invest at this time.

A company issues its secondary bonds to the public through an investment banker as underwriter of the bonds. These are sold at their face (or par) value - usually of $1,000. The bond pays a constant yearly coupon rate - a fixed payment- that reflects the current interest rate for bonds of similar term (time to maturity)