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Introduction to Bonds & Bond Markets
Rating: 4.4 out of 5(10 ratings)
334 students

Introduction to Bonds & Bond Markets

Learn the fundamentals of bonds, bond valuation, trading, risks, and investment strategies with examples and resources.
Last updated 5/2025
English

What you'll learn

  • Understand the fundamental concepts of bonds, bond markets, and fixed-income securities.
  • Identify different types of bonds, including government, corporate, municipal, and international bonds.
  • Explain how bond pricing works and how yields are calculated and compared.
  • Recognize the key risks associated with bond investing, including interest rate risk and credit risk.
  • Understand how bonds are bought, sold, and traded in primary and secondary markets.
  • Apply basic strategies to build a simple, diversified bond portfolio based on personal or institutional investment goals.

Course content

5 sections25 lectures1h 54m total length
  • What Are Bonds?5:57

    Learn how bonds are IOUs issued by governments, municipalities, or corporations, offering fixed coupons, maturity repayment, credit risk levels, and tax-exempt income for diversification and steady returns.

  • Why Invest in Bonds5:18

    Investing in bonds offers safety, steady income, and portfolio balance, serving as a reliable foundation for long-term planning with predictable income and diversification.

  • Government Bonds3:19
  • Corporate Bonds4:54

    Explore corporate bonds as a flexible funding tool that lends capital to corporations, with various maturities and types like investment-grade, high-yield, convertible, and callable bonds.

  • Municipal Bonds (Munis)4:28

    Explore municipal bonds, or munis, debt securities issued by governments to fund public projects, with tax-advantaged, semiannual interest and varying maturities, backed by general obligation or revenue structures.

  • Zero-Coupon Bonds2:51

    Zero-coupon bonds pay no interest until maturity and trade at a deep discount to face value. You receive the full face amount at maturity, reflecting issuer's creditworthiness risk.

  • Introduction to Bond Investing
  • Resource: Glossary of Terms 'Bonds & Bond Markets'0:10

Requirements

  • No prior finance experience is needed.
  • A basic understanding of financial markets is helpful but not required.
  • Curiosity about investments, financial literacy, or building a stronger understanding of bond markets.

Description

Bonds are the foundation of the global financial system—and understanding how they work is essential for anyone serious about finance, investing, or building a resilient portfolio. In this course, you'll get a clear, accessible introduction to bonds and bond markets, with real-world examples and easy-to-follow explanations designed for both beginners and aspiring professionals.

We’ll cover everything from what bonds are, why they exist, and how they are valued, to how they are issued, traded, and rated. You'll learn how interest rates impact bond prices, what terms like "yield to maturity" really mean, and how to recognize the different types of bonds government, corporate, municipal, and more.

You'll also explore key risks like credit risk, liquidity risk, and interest rate risk, and discover basic bond investment strategies, including laddering, diversification approaches, and understanding bond market cycles over time.

By the end of the course, you’ll be able to:


  • Understand bond structures, terms, and pricing mechanisms

  • Navigate primary and secondary bond markets

  • Identify the risks and returns of different bond types

  • Evaluate bond investments based on yield and credit ratings

  • Start building a foundational bond portfolio for long-term financial goals

  • Approach bond investing with greater confidence and practical knowledge

No prior finance experience is needed—just curiosity and a willingness to learn. This course is your essential entry point into the world of fixed-income investing.

Who this course is for:

  • Beginner investors wanting to understand bonds as an asset class.
  • Business, finance, and economics students seeking clear explanations of bond markets.
  • Professionals preparing for finance certifications or roles in banking, wealth management, or corporate finance.