What's a bond? (2024)

In order to get adequate diversification, it's a good idea to spread the bond portion of your portfolio among various Treasury bonds, high-grade corporate bonds and, if you're in a high tax bracket, municipal bonds (because interest on munis is tax-free). You'll probably want to steer clear of riskier high-yield bonds - also known as junk bonds.

What's a bond? (2024)

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