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Buying bonds

Important information: this section of our website aims to help you understand and use this important asset class, it is not personal advice. Neither income or capital is guaranteed, the value of investments can fall as well as rise and you could get back less than you invest. Tax rules can change and the benefits depend on your personal circumstances. Bonds may not be suitable for all investors, if you are unsure of their suitability for your circumstances please ask for financial advice.

Identifying your bond

Once you have determined which bond or bonds to buy, it is important to correctly identify it to prevent errors in dealing or other misunderstandings. Each issuer may have several bonds trading in the market at any given time.

Market convention describes bonds in the following notation: issuer, coupon, maturity. Thus, the bond illustrated below would be described as the "BT Group PLC five and six eighths percent 7 December 2028". As at 29 April 2024, the details of this bond are as below.

Issuer Coupon Date Life Price (per bond) Yield
BT Group PLC 5.750% 7 December 2028 4yrs 105.00p 5.476%