The Life of a Bond
HOW IT’S CREATED, ISSUED, PRICED, AND TRADED
This chapter provides the information you need to become an educated bond buyer. Although it may be tempting to skip this material and flip to the chapter on buying bonds, consider this: It will be much harder to profit from the money-making strategies we outline if you don’t understand bond basics. Read this chapter to get an overview and refer back to it when you need a refresher to help you understand a particular investment. As in previous chapters, we identify keywords and terms in italics to make it easier for you to relocate it.
To induce you to read further, remember that bond returns can be quite lucrative. Consider that when stocks collectively took a hit during ...