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fixed income securities

Trade Bonds with CFI

What is a Bond?

A bond is an instrument that typically provides a fixed income in terms of interest. It represents a debt between the purchaser and the borrower. The borrowers are typically the government/government entities or corporations issuing bonds to raise money. The investor buys the bond and periodically receives interest payments up until a maturity date when the principal is paid back to the investor. Government bonds are usually the safest but offer relatively low interest payments. On the other hand, corporations and other entities which have a higher risk of one-day defaulting, offer a higher interest rate to appeal to the masses for the added risk they bring. CFI offers access to a variety of corporate and government bonds through its CFI Global platform.

Information about trading Bonds with CFI

Trading example

*Please note that the example below is hypothetical in nature and does not necessarily reflect real conditions. You have been watching a 10-year corporate bond paying 4% with a face value of $5,000. You decide to buy the bond and hold it till maturity. Every year you receive 4% interest (5,000 x 4% = $200) After 10 years, you will receive the $5,000 back and a total of 10 years of interest which amounts to $2,000.

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