Bonds as Investment Vehicles

Bonds are fixed-income instruments that represent a loan made by an investor to a borrower. They are used by companies, municipalities, states, and sovereign governments to finance a variety of projects and activities.

Why Invest in Bonds?

• Steady Income: Bonds provide regular interest payments.
• Lower Risk: Generally considered safer than stocks.

Investors should evaluate the credit quality of the issuer and the bond's duration before investing.