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Finance For Dummies

Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.

Saturday, September 23, 2006

Corporate Bonds

Corporate bonds are a popular way to lower risk in your portfolio while diversifying. Here we will go over the traits of corporate bonds.

  1. Investment objective is income and diversification
  2. Liquidity can be low or high
  3. Fluctuation in pricipal and returns can be low or high
  4. Interest payments along with principal are taxed as ordinary income in the year received

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