A common aspect in bonds trading is essentially 'over one hundred', meaning you are trading bonds at higher value than the issuance price, and bonds that are 'under ten' are bond trading that is at a discount. The a hundred refers to a hundred percent, which is its initial price.
Like most investments, bonds carry some risk factors. If your company goes insolvent, bond-holders do have precedence over stockholders when dealing with the creditors payment, but if there is no cash available for the payment, your position in the waiting line is essentially irrelevant. A good deal of bonds are reasonably low at risk, as commonly it is anticipated that you would at least get your cash back during a crisis, however the less the risks, typically the less the profit on your bonds.
To assist you in assessing which bonds are good for you, it is better to examine the bonds ratings put out by Standard and Poor's Index or Moody. Those organizations break down bonds using incredibly intricate, technical techniques, in an attempt to create a simple prediction. You may start from the really low risks or those AAA-rated bonds, and finally the CCC-bonds, which are extremely high in risks and are frequently called as high-yield bonds.
Be sure you do your research before purchasing bonds - check over the business, including profits predictions, likely legal problems, debt levels and so forth. Essentially, you will loan that company your cash, and just like most lenders, you have to feel comfortable that the interest rate will be compensated in a timely manner, and that this company can pay off the debt entirely at the agreed period.
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