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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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How does a company’s credit rating affect the bonds it issues?

A company with less than stellar credit generally must pay higher interest rates in order to compensate bond holders for the added risk they are taking on.