Types of Bonds You Should Know About
1. Government Bonds: Recommended by the national governments, one example is U.S. Treasury bonds. In general, they are risk-free because they are issued or guaranteed by the government. A high-interest-rate bond pays a lesser interest rate but holds a very minimal risk of losing money.
2. Corporate Bonds: This is for corporate companies to raise funds for some specific undertaking or cost. They have a higher return than for government bonds but also much more risk.