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Summary: Bonds are conservative financial instruments used for saving money and earning interest, and are used by municipalities to raise money from their tax payers. Learn more about bonds, their different ratings and how each earns interest with tips from a registered financial consultant in this free video on finance and investment.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"This financial adviser Patrick Munro discussing types of bonds. Bonds as opposed to stocks are a more conservative type of arrangement of saving money. Bonds bear interest rates and really they're a form of an I.O.U. the I.O.U. can be given to governments, both state, federal and municipal. And they can also be given to businesses as well. And those businesses rate their bonds from double A all the way down to junk bonds status. The lower the classification of rating on a bond, usually the higher interest rate that's offered up to the investor who's willing to take that increased risk. There are various types of bonds that address raising money for the building of schools and hospitals. This is how municipalities actually will raise money from their tax payers. Many times pension funds that hold monies for a lot of investors will place large orders for bonds, going for it as well. This is Patrick Munro financial adviser discussing the different types of bonds."