what do you think? do you agree or disagree? what is your opinion to following...
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what do you think? do you agree or disagree? what is your opinion to following text
Bond is a debt from financing for corporations and government. It is issued by the borrower with a promising to pay its holders the predetermined and fixed amount of interest per year and accept the value of the bond at maturity.
By owning bonds, I would get paid by interest payments usually every 6 months
There are some reasons the investors purchase the hold bonds as following: Security which the bond holders get paid first in case the company goes bankrupt. The investment is liquid and its transactions can be made online.
If I am planning to have an investment portfolio, I would like to put in convertible bonds as it gives me potential participation in upside, without risking my initial investment. Also US Treasury Inflation Protected Bonds. About 40% of my portfolio would be bonds.
Bonds yield is tight up to the bond price. When the prices rises, the yield goes down even to negative levels. Investors still can buy these and expect for higher yield later.
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