There are lots of factors relating to the initial investment, the rate of return and what happens at the end of the bond’s lifetime? There are also considerations to be made in regarding the issuers creditworthiness and the legal obligations. We’ll also give you an example of buying a bond and explain how and when you’d receive payments.
- The auction process – bids, issuers and investors
- What rate will you receive on your investment?
- Buying a 5 year bond – how does it work?
- Is the issuer creditworthy?