investing in bonds usually are corporate (CLICK HERE) Bonds are a great way to try to make some secure income from your investments that isn't too risky. Quite simply they are just a loan to a corporation or entity that must be payed at a later date. In the case of corporations bond holder must be paid before preferred stockholders and common stockholders. There are some terms that you must know if you want to invest in bonds. Maturity date- this is the date that the issuer has to pay you the bondholder the amount in dollars that is due. After this maturity date the corporation or entity is no longer entitled to owe the bondholders anything so long as they have been paid off. The coupon is the interest rate that usually stays the same for the life of the bond. Riskier bonds of course usually have higher interest rates. Callability-which means that the issuer or the person you loaned the money too can pay off the bond BEFORE the maturity date. Some bonds however that have this feature have a higher premium so if they pay it off early you will still get a fee and a return on your investment. For safer government bonds (click here)

When should my market strategy include bonds?