4th Dec 2009 by Michael Haltman
For the neophyte investor up to the professional, there are only so many ways in which to invest in bonds. The first step, before anything, is to determine the class of bonds that are desired. Treasury, corporate,agency, municipal and so on. For this an investor needs to determine the appetite for risk, the purpose for the purchase (income, a specific future expense or to park funds short-term) the amount to invest and the vehicle for that investment (individual bonds or mutual funds).
Once these questions are answered, a trusted financial advisor can help to direct the investor to the proper investment and investment vehicle. Some bonds are listed on exchanges, treasury bonds can be bought from a firm or directly from the government (new issue), but with new levels of transparency in pricing an investor should be able to determine is they are paying a proper price.
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