When a company has spare cash, it can increase its money through asset management. A company needs to make low-risk investments, and bonds are particularly popular investments. By investing in government and corporate bonds, the company can earn dividends. The annual interest rate varies depending on the bond the company invests in, with low-risk bonds […]
Archive List for Bonds
Why Rising Interest Rates Cause Bond Prices to Fall: Inverse Relationships and Effects
If you want to invest in bonds, you need to understand how bond values are determined. Most people who invest in bonds are looking to earn interest income. However, if the price of the bond declines, the income you get will decrease. In other words, you will lose your principal when you sell the bond. […]