Business Needs Products Get a Printer Friendly Version Bonds represent a loan made to the issuer of the bond. Bonds can be taxable or tax-exempt and are issued by a corporation, the United States government, a United States government agency or municipality. Typically, bonds pay a fixed rate of interest at regular intervals and have a definite maturity date. Once a bond matures, unless the bond is redeemed prior to maturity by the issuer, the investor is typically paid the face value of the bond.
Bonds are still subject to risks as any other type of security.
Individuals must weigh their risk tolerance against the type of bond and their investment objective prior to investing. All rights reserved. The Northwestern Mutual Financial Network is the sales and distribution arm of The Northwestern Mutual Life Insurance Company, its affiliates and subsidiaries. Mutual funds, unit investment trusts, and money market funds. Frank Russell Company is a separately-operated subsidiary of Northwestern Mutual Life.