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(Investing in Bonds, 2005)
Investments are made either to preserve capital funds, increase capital funds, or used as an avenue to receive dependable income from interest payments. "There are a number of key variables to look at when investing in bonds: the bond's maturity, redemption features, credit quality, interest rate, price, yield, and tax status." (Investing in Bonds, 2005) Depending on the investors end state goals will determine weather investing in bonds is the correct choice.
There are risks associated with the bond market which every buyer of bonds has to be cautious of. Inflation causes the value of money received in the future to be worth less than the value is worth today...
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