How do I go about buying BONDS?

Question

I know what a bond is and what its used for, but thats about it. I don't know how to buy them or how long to keep them or anything else. I'm very new to investing. Whats my first step with bonds?

Lets say I have $1000 for investing in stocks and bonds. I want to spend $300 to $600 on bonds. What do I do? (this is just an example).

Thank you!

Answer 1

What kind of bond?  Treasury bonds and muni bonds can be bought direct.  Corporate bonds trade on bond markets.

Answer 2

Wow,

    

       Have you not seen inflation in the U.S..  Gas by it self was up ~26% year over year, and I know the official number is 2%, but I live in the real world.  You may want to seriously consider allocated Gold (which means it actually belongs to you - not a denominated account.  ~100 rise from 6/25/2008 to 7/15/2008.  More bank failures will probably see higher returns.

you need to go to www.dollarcollapse.com

Answer 3

Bonds, like stocks are bought through broker/dealers

If you know about bonds, you failed to state what type of bonds you wanted to buy

Bonds trade in units of $1,000, so you're going have a hard time buying any bond of real value.   Also, you will have to go through a broker/dealer and many want a minimum of $1000 to open an account, so be prepared to spend 1000

You may be able to find some corporate bonds over-the-counter, but the interest rate will be very low, especially in the demonination you want to buy

Call you local broker/dealer and the sales rep check out what's available, if any

Answer 4

Consider buying a bond mutual fund. That approach enables you to have the benefit of some diversification across multiple bond issuers. It also lets you benefit from skills and capabilities of a professional in an intensely competitive profession. An example of a top flight US bond mutual fund is Manager's Fremont Bond Fund (MBDFX).

Answer 5

I say

invest in a precious metal. Witht he way out economy is going, I would not give an IOU to the government and expect them to pay me back. Metals appreciate better and beat inflation. They are also a hedge ( protection) against Hyperinflation.