What is a Fixed Rate Bond?

A fixed rate bond is a specific type of bond where the interest rate remains fixed or constant throughout the life of the bond. This means that when you purchase a fixed rate bond, you know exactly how much interest you will receive until the bond matures. Fixed rate bonds provide investors with certainty about their future cash flows because the interest payments do not change over time. The interest rate remains constant throughout the bond's life. Many corporate bonds can be fixed rate bonds, but not all fixed rate bonds are corporate bonds; they can also be issued by governments, municipalities, or other entities.

• Predictable Returns: With fixed rate bonds, you know exactly how much interest you'll earn over the bond's term. This predictability can be valuable for budgeting and financial planning purposes.
• Stability: Unlike variable rate bonds, where the interest rate fluctuates, fixed rate bonds provide stability. This stability can be especially appealing during times of economic uncertainty when interest rates may be volatile.
• Protection Against Interest Rate Increases: If interest rates rise after you purchase a fixed rate bond, you'll continue to receive the same interest rate until the bond matures. This can protect you from the risk of declining returns associated with rising interest rates.
• Diversification of Portfolio: Fixed rate bonds can be a valuable addition to a diversified investment portfolio. They provide a stable source of income that can help offset the volatility of other investments, such as stocks.
• Lower Default Risk: Fixed rate bonds issued by governments or highly rated corporations typically have lower default risk compared to other types of investments. This can make them a relatively safe investment option, especially for investors seeking steady income with minimal risk.
• Liquidity: While fixed rate bonds have a fixed term, they are often traded on secondary markets, providing investors with liquidity if they need to sell the bonds before maturity. 

Overall, fixed rate bonds can be a valuable component of an investment strategy, offering stability, particularly for seniors who are living on a fixed income.

People can purchase corporate bonds through various channels: Brokerage Firms, Financial Advisors, Bond Mutual Funds and ETFs, Directly from Issuers, Online Bond Marketplaces, and Bank Treasury Departments. 

What Makes Worthy Bonds Different?

Distinguishing itself with unique features, Worthy Bonds stands out in the investment landscape:

• Accessible to All: Worthy Bonds break down barriers by allowing even small investors to join the fixed income market with just $10. This inclusive approach opens up investment opportunities to a diverse range of individuals, regardless of their financial capacity.
• Stable Returns: As corporate bonds, Worthy Bonds offer a fixed interest rate (_xx% per year), ensuring investors a steady and predictable income stream. Unlike publicaly-traded bonds, the value of Worthy Bonds remains unaffected by market fluctuations.
• Easy Liquidity: Worthy Bonds can be redeemed at any time without incurring penalties, providing investors with the flexibility to access their funds when needed. This feature ensures that the value of Worthy Bonds remains constant, even during challenging market conditions.
• Backed by Assets: Worthy Bonds are backed by a portfolio of community real estate assets, offering an added layer of protection for bondholders. With conservative loan-to-value rates between 55% and 65%, investors can feel good about the stability of their investment.
• Supporting Homeownership: By investing in Worthy Bonds, individuals indirectly contribute to supporting first-time homebuyers as a portion of the bond proceeds are lent to homebuilders, making a positive impact within their communities through their investment choices.
• Streamlined Investing: Worthy Bonds offer an automated investment feature, allowing investors to easily set up recurring investments and contribute regularly to their bond portfolio.
• Round-Up for Growth: Through Worthy's Round-Up App, investors can seamlessly accumulate bonds by rounding up their daily purchases and investing spare change. This innovative approach enables all individuals to build and grow their savings, regardless of their available cash reserves.

Overall, Worthy Bonds present a straightforward and accessible avenue for investors to earn attractive returns. With a blend of features like low minimum investment, fixed interest rates, asset-backed security, round-up investing, and hassle-free liquidity, Worthy Bonds offer a compelling choice for investors seeking a fresh perspective on fixed-income investments.

Learn more about Worthy Bonds Today!