INVESTING BASICS 📈 Bonds Explained (What is a Bond?)

MY EBOOK! http://www.ryanoscribner.com/stock-trading In this video I will explain the investing basics of bonds. A bond is a debt instrument in which money is loaned to an entity for a designated period of time. Interest paid on the bond can be fixed or variable interest rate. Bonds are used by companies, municipalities, states and governments to raise money and finance specific projects. Bonds can be another option for a company aside from getting a loan from a bank. Bonds are typically issued at $100 or $1,000 per individual bond. Investment Basics of Bonds | Characteristics “Face Value” – Dollar amount the bond will be worth at maturity. “Coupon Rate” – Interest rate the issuer will pay on the bond. “Coupon Dates” – Dates the bond issuer will make payments. “Maturity Date” – Date the bond issuer will pay face value for the bond. “Issue Price” – Price the issuer sells the bond for originally. The interest rate of a bond is determined by the credit quality and duration of the bond. Longer duration bonds tend to have higher interest rates as they are considered higher risk. Investing Basics of Bonds | Categories “Corporate Bonds” – Issued by companies. “Municipal Bonds” – Issued by states and municipalities. “US Treasury Bonds” – Issued by the federal government. Investment Basics of Bonds | Varieties “Zero Coupon Bonds” – Do not pay out regular coupon payments. “Convertible Bonds” – Allow bondholders to convert debt into stock. Most bonds today are considered bullet bonds. These do not pay regular coupon payments. The entire face value of the bond is paid upon maturity. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Videos: Investing Basics: Bonds https://www.youtube.com/watch?v=0DT6WBwZJbw The basics of bonds - MoneyWeek Investment Tutorials https://www.youtube.com/watch?v=vYMPez0-Uso Related Articles: Investopedia | Bonds http://www.investopedia.com/terms/b/bond.asp If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life! About Me: My name is Ryan Scribner. I am a nutrition and fitness crusader and I consider myself to be a life student of personal development. I am also an investor. I went from being an overweight college student to living at 8% body fat. About two years ago when I started weight lifting, I was completely clueless. I never played sports in high school and I had no base level of fitness established. I made many mistakes, but over time I developed an understanding. I want to help others develop the body, spirit and mind they deserve. In making mistakes along the way and learning from scratch, I have a lot of value to bring to the table. I recommend my content to those interested in the accumulation of wealth, fitness and nutrition as well as personal growth and development. Recently, I made my own happiness a priority after living with depression for over a year. I want to share with you exactly what I did to get to a state of perpetual lasting happiness. I have also spent a great deal of time learning about investment and wealth accumulation. While money alone doesn't bring happiness, it allows you to experience many things which do bring happiness. Start the journey. Involve the right mentors and coaches. Learn.

Comments

1. Can you actually lose money with Bonds?
2. Very informative video! Thank you for sharing the things that you have learned along the way with us
3. I am gonna fail life :(