Evaluating Bonds
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Evaluating Bonds
Before you begin bond investing, evaluate different bonds. When comparing bonds, look at the par value, the coupon rate, the maturity date and whether or not the issuing organization will have the right to call the bond early.
The par value is the amount of money that will be paid to you when the bond matures. The coupon rate is the amount of interest you will be paid periodically throughout the life of the bond. The maturity date is the date that the issuing organization will pay you the par value.
Although the maturity date is a fixed date, a company that retains the right to call a bond may decide to return the par value to you early.
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