Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

How Bonds Work & How to Invest in Them

By Lyle Daly – Updated Jan 13, 2025 at 2:11PM

Key Points

  • Bonds are issued by organizations to borrow funds, with the promise of repaying that money with interest.
  • Bond investors profit by collecting interest payments or selling bonds at a higher price.
  • Bond prices are inversely related to interest rates, so higher rates generally mean lower bond prices.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.