The Risk of Not Getting Paid Back on a Bond

When you lend money, there's always a risk that you won't get it paid back. One of the main risks with bonds is what we call default risk. Credit ratings are going to tell you how risky that bond is in terms of its ability to get paid back. And also, the bonds i'm seeing, they tend to promise to pay me back in like, seven, ten, 20 years time. So quite a long way down the line. But remember last week when i said the stock market is a second hand market? Well, there's also a secondhand market for bonds. That means you can resell your bond to some one else, and hopefully you'll get a