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How to choose reliable bonds?
8 days ago by veltotes
When choosing reliable bonds, it is important to consider several key parameters, such as credit rating, maturity, yield, and coupon rate. A high credit rating indicates the issuer's financial stability and lower risk of default. Maturity length should match your investment horizon and liquidity needs. Yield and coupon rate help to evaluate potential returns, but it's also crucial to assess the bond's current market price and its relationship to its face value. Additionally, diversification across different issuers and sectors can reduce overall risk.