: Debt issued by government-affiliated organizations like Fannie Mae or Freddie Mac. Choosing Between Individual Bonds and Funds Investors generally have two paths to entry: Bonds versus bond funds - Vanguard for Advisors
: The fixed annual interest rate the issuer pays the bondholder. bond buying guide
: Issued by companies to fund operations. These range from "investment-grade" bonds (higher credit quality) to "high-yield" or "junk" bonds, which offer higher interest rates to compensate for a greater risk of default. bond buying guide
: The actual return on your investment, which fluctuates based on the price you paid for the bond relative to its coupon rate. Common Types of Bonds bond buying guide