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Often considered to be one of the most conservative of all investments, bonds actually provide benefits to both conservative and more aggressive investors alike. The variety of bonds available provides an array of options to meet many investment goals, from earning regular income to achieving capital appreciation much like stocks. To understand these benefits, it is important to understand how bonds work. This fact sheet explains the fundamentals of bonds, addressing: how bonds are structured and priced; what factors affect prices; how to measure return; types of bonds; bond risks; and bond taxation. By learning about these bond basics, you'll be on your way to understanding how bonds can contribute to your investment goals.