You can add bonds to your investment portfolio to provide stability. That’s because bonds are known to be safe investments. When you invest in bonds, you’re getting a steady stream of income in times when your stocks may perform poorly. Bonds are a great way to protect your savings when you don’t want to put your assets at risk.
Key Features of Bonds
Most bonds have five features when they are issued: issue size, issue date, maturity date, maturity value, and coupon. Once bonds are issued, the sixth feature appears, which is yield to maturity. This becomes the most important figure for estimating the total yield you will receive by the time the bond matures.
Issue Size and Date
The issue date is simply the date on which a bond is issued and begins to accrue interest. The issue size of a bond offering is the number of bonds issued multiplied by the face value.
For instance, suppose an entity issues two million bonds with a $100 face value.