Bond typesTypes of bonds are issued by the U.S. government. They range from four weeks to 30 years before maturity and are generally viewed as the safest bonds on Earth. are issued by state and local governments. They are generally very safe and usually pay higher yields than Treasury bonds. are issued by private companies. Depending on the issuer's financial strength and creditworthiness, bonds can be very safe or much riskier.For riskier bonds, investors are paid a premium in the form of a higher yield based on that risk. As described above, most bonds are repaid in cash at maturity, but with convertible notes, the issuer can repay investors with shares of the company's stock.Pros and consPros and cons of bondsProsThey are a stable, low-volatility source of income.They have a lower risk of permanent losses than stocks.Bonds have a higher yield than savings, which helps protect the value against .The value can increase if interest rates fall.ConsBonds can lose value if the issuer cannot make interest payments or repay them at maturity.They can lose value if the investor sells the bond before maturity and interest rates have increased.They have generally underperformed stocks as a long-term investment.How to buyHow do I buy bonds?Like stocks, most online brokers have a trading platform for buying and selling corporate and municipal bonds, both new issues (from the company) and secondary markets (from other investors). You can buy Treasury securities directly through the Treasury Direct website.However, most investors own bonds through bond . These funds specialize in buying and selling bonds and pool investors' money to do so, collecting a fee known as an to cover costs and earn a profit. Depending on the type of bond you want to own, you can invest in a bond ETF that specializes in it.It's worth noting that bond funds subject investors more to interest-rate volatility. As we saw in 2022, bond prices crashed when the Federal Reserve sharply increased interest rates due to the inverse correlation between bond prices and interest rates., Investing in stocks and bonds can help to build wealth for anyone with disposable income. Read on for the differences between them., From real estate to precious metals, the world offers a variety of options for investing your money. Stocks and bonds are two of the most common. Both options can play an important role in your .