A strong portfolio is one that is well-diversified. Bonds, while inherently lower-risk and lower-yield, provide a balance against higher-risk, higher-yield instruments such as equities. Bonds are debt securities. When the Government and corporations need to take out loans to fund projects, they issue bonds which promise to pay lenders back in a fixed number of years on the bond’s maturity date with interest payments along the way. The biggest draw of corporate bonds is that they pay out highest interest rate among bonds. Note: zero-coupon bonds do not pay interest until maturity date. 3 key benefits: Generally safe investment. While all investments carry risk, it is very unlikely for the Government to default and uncommon for high-quality corporate bond to default. Steady stream of income. Bonds offer some regularity to your income stream, because you can typically count on interest payments twice a year. This makes budgeting somewhat easier....