How to Invest in Bonds

Bonds are the prototypical traditional investments, as opposed to stocks, which are more speculative in nature. When you invest in bonds, you pay the par value of the bond, plus any premium or minus any discount, plus any accrued interest, plus any commissions, and get paid fixed annual interest specified by the coupon rate, typically twice yearly until maturity of the bond, when you get paid the par value of the bond.
Barring defaults in interest or principal, bonds are a great way to save and grow your money steadily, especially during periods of high interest rate when you can get yields comparable to or exceeding that of stock returns. Here are the steps to get you started investing in bonds.
Note: All dollar amounts refer to US dollars, and the bond types referred to relate to the United States of America's bond market.

Mýa Natalie Imbruglia Patricia Velásquez Jennifer Morrison Adrianne Palicki