Bonds are a great way of generating passive income. So what is a bond?๐
Bonds are a form of fixed-income investment, where the investor lends money to the issuer in exchange for periodic interest payments (coupon payments) and the return of the principal amount (face value) at the bond's maturity.
Investing in bonds involves purchasing debt securities issued by governments, municipalities, or corporations.๐ฆ
Top 4 reasons to invest in bond:๐
๐ฅ๐ฒ๐น๐ถ๐ฎ๐ฏ๐น๐ฒ ๐๐ป๐ฐ๐ผ๐บ๐ฒ ๐ฆ๐๐ฟ๐ฒ๐ฎ๐บ: Bonds provide regular interest payments, creating a steady income source.
- ๐๐ฎ๐ฝ๐ถ๐๐ฎ๐น ๐ฃ๐ฟ๐ฒ๐๐ฒ๐ฟ๐๐ฎ๐๐ถ๐ผ๐ป: Investing in bonds can help protect your capital from market volatility.
- ๐๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป: Bonds offer a way to diversify your investment portfolio and reduce overall risk.
- ๐ฆ๐ฎ๐ณ๐ฒ๐๐: Government bonds, in particular, are considered safe-haven assets with low default risk.
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