Buy Corporate Bonds →

Before adding corporate bonds to a portfolio, an investor must evaluate the following: A. Credit Quality (Ratings)

Purchasing specific bonds through a brokerage. This requires a higher minimum investment (often $1,000 to $10,000 per bond) and requires the investor to research individual companies. buy corporate bonds

The difficulty of selling a bond quickly at a fair price before it matures. Before adding corporate bonds to a portfolio, an

They provide regular, predictable cash flow through semi-annual or annual interest payments. The difficulty of selling a bond quickly at

Bond prices have an with interest rates. When market interest rates rise, the price of existing bonds typically falls (since new bonds are being issued with higher coupons). Conversely, when rates fall, bond prices rise. C. Duration and Maturity Short-term (1-3 years): Lower risk, lower yield. Intermediate (4-10 years): Balanced risk and yield.

Independent agencies like , Standard & Poor’s (S&P) , and Fitch rate bonds based on the issuer's ability to pay back debt.