How much money can I make on a bond?
- What's a bond?
- How much money can I make on a bond?
- How do bond returns compare with stock returns?
- What are the advantages of bonds for retirement?
- What are the risks in bonds?
- What are TIPs?
- Which bonds are good for a retirement portfolio?
- How should I buy bonds?
- Should I buy short-term or long-term bonds?
- How much of my portfolio should be in bonds?
- How are bonds taxed?
It depends on the company, government or agency that's issuing the bond, as well as what the bond's maturity is.
Generally, the less stable the issuer, the higher the interest rate it will pay. That's because the issuer has to make it worthwhile to investors, given the greater risk that a less-stable issuer will default on its bond payments. Treasury bills, issued by the U.S. government, are considered the safest of all.
Typically, the longer the bond's term, the higher the interest rate it will pay.
