If you’re new to bonds, terms like coupon rate, yield, maturity, and credit rating can make them sound more complicated than they really are. However, at its core, bonds are a way for governments or companies to borrow money from investors for a certain period of time. In return, investors may receive periodic interest, while the principal amount is usually repaid at maturity, subject to the issuer’s ability to repay. This Bonds 101 infographic breaks down essential concepts in simple terms, helping first-time readers understand how bonds work, where returns can come from, and what risks to consider before investing.
