|
Bonds are another building block of most investment
portfolios. There are all types to choose from and ways to buy them.
Everybody and every entity can buy bonds. Bonds are
used by your municipality to fund a new school or by corporations
that need to raise money. When you buy a bond, you're lending someone
money. This chapter will look at the various types of government
and corporate bonds, from U.S. Treasury securities (T-bills) to
savings bonds (I-bonds and EE Patriot bonds) and corporate bond
funds.
 |
What you can expect to learn from this chapter: |
|
|
 |
U.
S. Treasury securities |
| |
Investing in U.S. Treasury
bills, bonds and notes is a risk-free way to earn a guaranteed
return. And the income is free from state and local taxes. |
|
The
I-bond |
| |
The I-bond has a fixed rate
of return and an inflation premium repriced regularly.
Learn how it works and how to buy it. |
|
Series
EE Patriot Bond |
| |
The Series EE bond is similar
to the I-bond, but it doesn't have the inflation protection.
|
|
TIPS
(Treasury Inflation-Protected Securities) |
| |
Keep your portfolio on top
of inflation with TIPS. Find out what they are, what the
tax implications are and where to buy them. |
|
Corporate
bonds |
| |
The riskiest fixed-income
investment, corporate bonds are best purchased by individuals
through a bond fund. |
|
Chapter
3 quiz |
| |
Do you know the advantages
of bonds? Test your knowledge. |
|
|
Chapter 3: Investing in bonds
