: Debt securities issued by government-sponsored entities like Fannie Mae or Freddie Mac.
: Similar to bank CDs but can be traded on the secondary market without early withdrawal penalties. buying bonds on etrade
: Includes T-bills (short-term), T-notes (intermediate), and T-bonds (long-term), which are exempt from state and local taxes. and T-bonds (long-term)
: Issued by companies to fund operations; these typically offer higher yields but carry more default risk than government bonds. buying bonds on etrade
: Often called "junk" bonds, these carry ratings below BBB and offer higher potential returns for higher risk. Trading Fees and Commissions
: Issued by state and local governments; interest is often free from federal income tax and sometimes state/local taxes.