Quote Originally Posted by nextbigthing View Post
What's the advantage to investing in bonds? My understanding is they're very safe however the rates are pathetic, often just 2.5%

Why would one not just put their money in a bank account which is safe enough in NZ and collect 4.25% interest?

This is something I've never fully understood so any answers appreciated. I have purchased a text book on the subject however I suspect it's covered in sleeping pill dust as whenever I read it I tend to fall asleep.

NBT
I have often wondered the same thing. You can get more with junk bonds but then your risk profile rises sharply as well and some junk bonds do end up defaulting. May I ask however where you can get 4.25% interest in a NZ bank?