Your Guide to Buying Bonds

If you want an investment that earns money but generally carries less risk than investing in the stock market, the bond market might be perfect for you. A bond is a debt issued by a company or a government. They essentially use bonds to borrow money and pay interest until the bond matures. At maturity, the full amount of the bond is paid back.

You can also buy and sell bonds before they reach maturity. Here’s what you need to know.