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• Overview
• What are bonds?
• How do bonds work?
• How do you make money with bonds?
• What makes bond prices rise and fall?
• What are the major risks of bond investments?
• What are the different types of bonds?
• What is the relationship between maturity, risk and interest rates?
• How does a company’s credit rating affect the bonds it issues?
• How are the credit ratings of different issuers determined?
• What are some special features available in the bond market?
• What are convertible bonds?
• What are "junk" or "high-yield" bonds?
• What are bond indexes?
• How do you buy bonds?
• What are some drawbacks of buying individual bonds?
• How have bonds performed in the past?
• Do bonds have liquidity?
• Who is promising your return?

Bonds

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What are convertible bonds?

These are corporate bonds that are sold as bonds, but that can be converted at a later date to common stock of the issuing company. Convertible bonds generally pay lower interest rates than regular bonds, because they can potentially be turned into stocks, which have higher return potential.