When you buy a bond, you are investing in the debt of the particular government or company that issued the bond. You hand over your money and the issuer agrees to make regular payments to you, when they say they will. At the end of the agreement, the issuer will then return the money you initially invested (the principal).

General Advice warning:
Pearl Funds Management, an authorised representative AFS Rep No 001254808 of Banyan Securities Pty Ltd AFSL 484139
The information presented by us is general in nature and does not take into account your personal goals and objectives. It does not represent financial product advice. You should always seek independent legal and financial advice before making a decision in relation to a financial product. Read the Product Disclosure Statement (PDS) before making a decision. You should consider your own circumstances, needs and financial objectives before making a decision.

Kirstie Spicer
20 January 2015