Bonds

Bonds are loans investors give to companies or governments in exchange for interest. They pay steady income and return the principal at maturity. Bonds are safer than stocks and used to balance portfolios. They protect investors during market crashes. Bond prices rise when interest rates fall, and fall when rates rise. They are key for retirement planning. They suit conservative investors.

Government bonds like US Treasuries or Australian Bonds are the safest. They back entire nations. Corporate bonds come from companies and pay more interest. Examples include Apple or Toyota bonds. High-yield bonds pay higher returns because they are risky. They are issued by weaker companies. Municipal bonds fund schools and public projects. They are tax-friendly in some countries. Floating-rate bonds change interest with the market. They protect against rising rates. Inflation-linked bonds protect savings from rising prices. Examples include TIPS and Australian ILBs.