CHAPTER 3
Corporate Bond Market—For the Future 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“If a company can’t pay as it goes, it may be going too fast.”
Do I Need to Read This Chapter? • I’ve heard that corporate bonds are a good investment, but I don’t really understand what they are or how they work. • What’s the difference between a primary and a secondary bond market, and how does it affect me? • What happens to corporate bonds when interest rates rise or fall? • Can corporate bonds be recalled? • What are the various types of yields I can expect? • How can I identify and assess the risks involved in buying corporate bonds? • How do I decipher those fine-print bond listings in the financial pages of the newspaper? lthough stocks are more known to most investors, the bond market is far larger but widely misunderstood. There are many kinds of bonds, and investing in them wisely can be a complex, challenging task. However, the rewards are often great, and bonds are an option well worth investigating for the middle-income investor.
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