Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, ...

Learn how call protection in bonds prevents early buybacks by issuers, safeguarding your investment for a defined term with ...

Discover how index-linked bonds protect against inflation by paying interest linked to indices like the CPI, ensuring a real rate of return. Explore their benefits and examples.

After enduring a tough year for bonds in 2022 and facing a still-high interest-rate environment in 2023, many investors may be reconsidering the fixed-income allocations of their investment portfolios ...

If you’re looking for a safe, tax-advantaged investment, you may have come across municipal bonds (muni bonds). But what are municipal bonds, and how do they work? Municipal bonds are debt securities ...

When companies issue a bond, they do so with a par value and a coupon rate: the terms that dictate the yield of the bond for potential investors. However, once they reach the market, bonds can trade ...

The 2008 financial crisis and the resulting market shocks had a number of surprising consequences. One that was particularly important to bond investors was the degree to which diversified bond funds ...

Junk bonds, also known as high-yield bonds, are risky debt securities rated below investment grade by the big three rating agencies. Junk bonds carry a higher risk of default than other bonds, and ...

Duration is the primary measure of interest rate sensitivity — it is the percentage change in price for a 1% change in interest rates. However, practitioners also look at convexity, which is the ...

If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.