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Investment income is the money you make from your investments, including common accounts, such as interest-earning savings accounts and brokerage accounts. While investment income is a great way to build wealth, keep in mind that some investments can complicate your taxes.
Bonds are loans that investors make to a corporation or a government body in exchange for regular interest payments and the return of principal at a future date. Companies issue corporate bonds to raise money for capital expenditures, operations and acquisitions.
Types of investments Bond: A debt instrument, a bond is essentially a loan that you are giving to a governmental entity or a company in exchange for a pre-set interest rate.
What is a corporate bond? A bond is a debt obligation, like an Iou. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.
An investment property loan is a mortgage for the purchase of an income-producing property. That includes buying properties to generate rental income or to renovate and sell for a profit (more commonly known as house flipping).
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).