How — To Buy Company Bonds

Before buying, look at the bond's from agencies like Moody’s or Standard & Poor’s (S&P).

Lower ratings (BB+ and below). These offer higher interest because there is a higher risk the company might default. 4. Evaluate the Key Terms When looking at a specific bond, pay attention to: Coupon Rate: The annual interest rate you’ll be paid.

Higher ratings (AAA to BBB-). These companies are considered stable and likely to pay you back. how to buy company bonds

Bonds usually trade in increments of $1,000 (the "par value"). If a bond is trading at 98, it costs $980; if it’s at 102, it costs $1,020. 6. Monitor Your Investment

These are "baskets" of hundreds of different corporate bonds. They provide instant diversification and are much easier to buy and sell, though the value of the fund will fluctuate with market interest rates. 3. Check the Credit Ratings Before buying, look at the bond's from agencies

You buy a specific bond from a specific company (e.g., Apple or Ford). You’ll receive fixed interest (coupons) and get your initial investment back on a set date.

Once you’ve picked a bond or fund, enter the ticker symbol or CUSIP number into your broker's trading platform. These companies are considered stable and likely to

Most individual investors buy bonds through online . If you already have an account for buying stocks, you likely already have access to bond markets. Check if your broker offers a "Bond Desk" or "Fixed Income" section. 2. Decide: Individual Bonds vs. Bond Funds You have two main ways to invest: