By Marc Davis Updated Jun 25, When investors buy a bond , they are lending money to the entity that issues the bond. The bond is a promise to repay the face value of the bond the amount loaned with an additional specified interest rate within a specified period of time. The bond, therefore, may be called an "I. Corporate bonds are issued by companies and are either publicly traded or private. Bond ratings are calculated using many factors including financial stability, current debt, and growth potential. In a well- diversified investment portfolio , highly-rated corporate bonds of short-term, mid-term, and long-term maturity when the principal loan amount is scheduled for repayment can help investors accumulate money for retirement , save for a college education for children, or to establish a cash reserve for emergencies, vacations or for other expenses.
March 24, Directly from the Feds: Treasuries are sold by the federal government at regularly scheduled auctions. You can buy them through a bank or broker for a fee, but why pay for something you can get for nothing? The easiest and cheapest way to participate in this market is to buy them directly from the Treasury on the Treasury Direct website. Through a broker: