A bond is an investment that gives you a fixed income over a set period. Governments, companies, and other organisations issue Bonds to raise money. When investing in a bond, you’re lending money to the issuer in exchange for regular interest payments.<\/p>\n\n\n\n
UK bonds<\/a> come in various shapes and sizes, but all bonds have one thing in common \u2013 they promise a fixed rate of return over a set period. It makes them attractive to investors who want peace of mind knowing what they’ll earn from their investment.<\/p>\n\n\n\n Governments issue government bonds as a way of borrowing money. When you invest in a government bond, you’re lending money to the government in exchange for regular interest payments.<\/p>\n\n\n\n Government bonds are considered very safe investments, as they’re backed by the full faith and credit of the government issuing them. Meaning in the event of a default, they’ll repay your original investment plus interest.<\/p>\n\n\n\n The rate of return on a government bond depends on several factors, including the country issuing the bond, the issuer’s credit rating, and prevailing interest rates. Generally speaking, government bonds offer lower returns than corporate or municipal bonds, but they’re also less risky.<\/p>\n\n\n\n Companies issue corporate bonds to borrow money. When investing in a corporate bond, you’re lending money to the company in exchange for regular interest payments.<\/p>\n\n\n\n Like government bonds, corporate bonds are considered very safe investments, as they’re backed by the full faith and credit of the company issuing them, which means that they’ll repay your original investment plus interest in the event of a default.<\/p>\n\n\n\n Corporate bonds usually offer higher returns than government bonds, but they’re also riskier.<\/p>\n\n\n\nInvesting in government bonds<\/strong><\/h2>\n\n\n\n
Investing in corporate bonds<\/strong><\/h2>\n\n\n\n
Investing in municipal bonds<\/strong><\/h2>\n\n\n\n