US Treasury bonds, which are backed by the creditworthiness of the United States government, generally pay lower yields than bonds issued by corporations with less creditworthy reputations. When you accept high yields and low credit quality, you risk seeing the bond issuer default on their bond obligations. Fortunately, the bonds used in the Annuity Board funds are high quality corporate or government bonds. Bond Funds Generally, bond funds contain bonds from multiple issuers and have a particular objective, such as intermediate-term investing. Unlike individual bonds, there is no stated maturity date for bond funds.
Funds automatically reinvest the interest earnings and proceeds from the sale or maturity of bonds.
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