How do you make money buying bonds

How do you make money buying bonds - Off topic but as far as investing for the short term (ie 2 years) – i would suggest that bond funds of any significant duration should be avoided – either buy very short term bonds funds or just use a high interest savings account. That’s one of many reasons why it’s only advisable to invest in individual bonds if you have more than 0,000 to invest (and even then, it still might not make sense unless you’re using those coupon payments for income). Think graham’s statement that he made very late in life was that buying individual stocks wasn’t worth the effort for the return because the markets had gotten too efficient and it was too hard to beat the index. So when a company needs to raise money, investors will demand an interest rate that’s a bit higher than what treasury bonds are offering in order to compensate the investors for the risk that the company goes bankrupt.

Bond Market : How to Make Money Buying Bonds

There are two components to making money in the bond market, including being safe and paying attention to bonds that do well ...