What Are Bonds?
A bond is essentially a loan you give to a government, corporation, or institution. In return, you earn regular interest payments (called a “coupon”) and receive your principal back at the end of the term (maturity date).
Why Invest in Bonds with The Guardian Assets?
Types of Bonds You Can Invest In
How Bond Investing Works
- You purchase a bond at a set price
- You earn interest at a fixed or variable rate (paid semiannually or annually)
- You get back your initial investment when the bond matures
Frequently Asked Questions
Are bonds safe?
Bonds are generally more stable than stocks, especially government and investment-grade corporate bonds. However, like any investment, they carry some level of risk, including interest rate and credit risk.
How do bond interest payments work?
Most bonds pay fixed interest (called coupons) at regular intervals — typically every 6 months — until maturity.
What’s the typical duration of a bond?
Bond durations vary from short-term (less than 3 years) to long-term (10 years or more). The longer the duration, the more sensitive the bond is to interest rate changes.
Can I sell a bond before it matures?
Yes, but the sale price may be higher or lower than the original investment depending on market conditions.
How do I know which bonds are right for me?
Our financial advisors will help assess your goals, risk tolerance, and income needs to guide you to the right bond strategy.
