Bond

A bond is a debt instrument issued by a company or government to borrow money from investors. The buyer of the bond receives interest during the term and the borrowed amount is returned when the bond matures.

How bonds work

When you buy a bond, you lend money to the issuer. The bond has a fixed interest rate and maturity. Governments and companies use bonds to finance operations and projects.

Why bonds are important

Bonds are a way for investors to invest money with relatively low risk compared to stocks. They provide regular interest income and can be used to diversify a portfolio.

Factors affecting returns

  • Interest rate on the bond
  • Borrower's creditworthiness
  • Loan term
  • Market interest rates and inflation

Tips about bonds

Consider the maturity, interest rate, and risk level before purchasing bonds. Government bonds tend to offer safer options, while corporate bonds may provide higher returns but carry greater risk.

The interest rate is variable and set individually. For an annuity loan of 310 000 kr with a 12-year term, a nominal interest rate of 8.19% and 0 kr in setup/administration fees, the effective interest rate will be 8.50%. Total amount to repay: 487 869 kr. Monthly cost: 3 388 kr spread over 144 installments. Your application will be sent to the lenders that best match your profile. Repayment period 1–20 years. Maximum interest rate is 22.99%. Interest range: 4.95% – 22.99%.

Borrowing costs money!
If you are unable to repay the debt on time, you risk a payment notice. This can lead to difficulties in renting a home, taking out subscriptions and getting new loans. For support, contact the budget and debt counseling service in your municipality. Contact details can be found at konsumentverket.se.

This is how the process works when you apply for a loan with Compari:

1) Fill in the form

You fill out your application and submit it.

2) Get up to 40 offers

We send your application to the loan brokers with the best chance of getting your loan approved.

3) Choose the best offer

Choose the offer that best meets your needs, completely without obligation.

Vid ansökan via en låneförmedlare görs alltid en kreditupplysning. Sambla, Axo Finans och Enklare använder UC. Klara Lån och Creditstar använder Dun & Bradstreet för mindre lån och UC för större, medan Ferratum använder Creditsafe. Därför kan flera kreditupplysningar tas om du ansöker genom Compari.

FAQ

Here you will find answers to the most frequently asked questions
What is a bond?
A bond is a debt instrument that companies or the government issue to borrow money from investors in return for interest.
How does a bond work?
When you buy a bond, you lend money and receive interest during the term and the principal back when the bond matures.
What types of bonds are there?
There are government bonds, corporate bonds and municipal bonds, with different levels of risk and returns.
Why invest in bonds?
Bonds provide regular interest income and are often a safer alternative than stocks, which helps spread risk in a portfolio.
What factors affect bond yields?
Interest rate, term, borrower's creditworthiness, market interest rates and inflation affect the return.
Are bonds risk-free?
No, government bonds have low risk, but corporate bonds can involve higher risk depending on the company's credit rating.