How to Invest in Bonds

Bonds are the prototypical traditional investments, as opposed to stocks, which are more speculative in nature. When you invest in bonds, you pay the par value of the bond, plus any premium or minus any discount, plus any accrued interest, plus any commissions, and get paid fixed annual interest specified by the coupon rate, typically twice yearly until maturity of the bond, when you get paid the par value of the bond.

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