Bond Definition: A
bond is a debt security where the issuer owes
the holders a debt and is obliged to repay the
principal and interest (the coupon) at a later
date, termed maturity. Some bonds are
"callable" which means the issuer can pay off
the debt before maturity. The ussuer of
debt always tries to get the best terms so a
smart lender should do their homework to get the
best rate with the lowest commission and call
protection. The safest ways to lend
money are through a CD with FDIC protection or
to lend to the US Government that has printing
presses to print more money to repay you.
- I Bonds (iBonds):
Inflation
Protected Bonds:
- TIPS: Treasury-Inflation
Protected Securities: (Chart
and
Info)