WHAT ARE BONDS?

A bond is a debt security, similar to an I.O.U. When you purchase a bond, you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In return for the loan, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it "matures," or comes due.

Among the types of bonds you can choose from are: U.S. government securities, municipal bonds, corporate bonds, mortgage and asset-backed securities, federal agency securities and foreign government bonds.

This site is not intended to take the place of professional advice. Please consult your investment professional before implementing any investment strategy. Incapital is a leading educator and wholesale distributor of taxable fixed-income products and services to the broker-dealer community.
Incapital markets only to broker-dealers and dealer banks and does not offer fixed-income products direct to the individual investor.

Copyright 2008. All reproduction and other rights reserved.

All information and opinions contained in this publication were produced by The Securities Industry and Financial Markets Association from our membership and other sources believed by the Association to be accurate and reliable. By providing this  general information, The Securities Industry and Financial Markets Association makes neither a  recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor.
Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions.