Bonds typically represent the conservative side of investing when examining Wall Street and the market. The fixed-income instruments represent a promise to repay a loan by a set date with a set interest payment. Bonds can be issued by the federal government, states, cities and even corporations. The money raised from issuing a bond can be used for a variety of reasons, from funding a new stadium or road in a city to new equipment for a company looking to expand. Those who invest in bonds are typically looking for a steady stream of income, such as during retirement. Bond yields can be heavily impacted by the actions of the Federal Reserve and the fiscal health of the government. Be sure to explore all our articles regarding bonds to invest in.
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