If you are new to bonds, terms such as coupon rate, yield, maturity and credit rating can make them seem more complicated than they really are. At their core, however, bonds are simply a way for governments or companies to borrow money from investors for a fixed period. In return, investors may receive periodic interest, while the original amount is generally repaid at maturity, subject to the issuer’s ability to repay. This Bonds 101 infographic breaks down the essential concepts in simple terms, helping first-time readers understand how bonds work, where returns may come from and what risks to consider before investing.
