Novice → Intermediate
Bond basics
A bond is an IOU: par, coupon, maturity — and credit risk. Education only — not a recommendation to buy, sell, or hold anything.
IOU anatomy
- Par / face — amount repaid at maturity (if no default).
- Coupon — periodic interest the issuer promises.
- Maturity — when principal is due.
Who issues bonds
- Corporations, sovereigns, agencies, municipalities.
- Different issuers → different credit and legal structures.
Price vs “safety” myth
Bonds can lose market value before maturity. “Bond” is not a synonym for “cannot lose.” Credit events and rate moves matter.
Practice angle
On a bonds SIM (fake money), watch how quotes move when rates narratives change — education, not a forecast.
Practice tip: Open Bonds SIM (fake money) and What is a bond?.