Not exact matches
The
bond issuers promise to pay you back for the full loan amount, also called par value, face value, maturity value or principal, and usually with
regular interest payments on the par value.
In fact, the ONLY example I can think of where a person can actually come out ahead by borrowing money is when public corporations issue
bonds to investors
on which they pay
regular interest payments.
One of the main benefits of corporate
bonds is that, up to the maturity date, you will normally get a
regular income from
interest payments on the money you have invested.
Dividends are taxed more favorably than
interest payments which are considered as
regular income so there is less of a tax burden
on dividend paying stocks compared to
bonds or other fixed income securities which pay
interest.