Matthew Frankel, CFP, The Motley Fool Published 8:00 a.m. ET April 28, 2019
If you don’t understand bond investing, you’re not alone. Q: I read that based on my age, I should have about 70% of my portfolio in stocks and 30% in bonds. The only problem is that I know absolutely nothing about bond investing. How should I go about doing it?
A bond is a debt instrument issued by a government, corporation, or other entity. For example, when the U.S. government needs to borrow money, it issues Treasury bonds. When companies need to borrow money, they often do so by issuing corporate bonds.
A bond has a face value — typically $1,000 — and pays a set interest rate, known as