Thread: Corporate Bonds
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Old 01-13-2009, 06:50 PM   #3
Nancy
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A GIC is practically risk free; a corporate bond is not. (Check out LQD, the corporate bond ETF to see what I mean.) Whether or not you think that risk is worth the extra premium is an individual decision.

When buying bonds, the minimum face value purchase is typically $5000, but you can get around this by buying strip bonds or non-interest paying bonds, e.g. strips/coupons/residuals (which you buy at a steep discount to face value and you make your money off of capital gains.)

On Investorline, you'd go under "Fixed Income" and then select either Quick Picks or one of the inventory searches.

Bonds are not a sure thing. You can lose money on bonds if prevailing interest rates go up.
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