Corporate bonds can be purchased through a stockbroker, or by investing in a gilt or corporate bond fund whose manager will select the best bonds to invest in. Only buy household-name funds with well-known managers, who have good track records.

Why hold bonds? The principle reasons for holding bonds are to reduce the overall risk of a portfolio and to produce a decent level of income.

A trick I'd use is to type 'corporate bonds forum' into a search engine, and see what comes up. If you find a lively forum, you can ask questions about the brokeage you're keen on, or ask for other users' recommendations.

WARNING: Some touts for brokers will likely lurk in these forums; you may not get unbiased advice. Also, some posters are overly negative; they hate everyone! Or they are witless, or ignorant. Search thoroughly: you'll know the truth when you find it.

Definitions:

• When bonds mature, you receive the bond's par value.
• The coupon rate is the amount of interest, expressed as a percentage of par value.
• Yield is the amount of interest the bond will pay in one year divided by its current price.
• The maturity date is when you'll receive the principal that you invested.

No one who buys a bond at the nominal price will be affected by price fluctuations as they will get the price they paid back back at maturity. Of course, with inflation, this will be less than what they started with. Those who paid less than the nominal value will make a capital gain on maturity. Anyone who paid more will make a loss.

Ask questions about the corporate bonds you'll be buying. A good broker will answer them. Research costs very little, and with the internet you can become quite informed with a bit of digging. Avoid advertisements. If you are going to read ads to find a corporate bonds, be careful. To tempt people, they will list the most attractive features. They will leave out any problems.

Expenses and Fees: All mutual funds have operating expenses. Some funds may charge a redemption fee for shares sold within a certain time period. Some bond funds charge a small annual account fee. Others have sales charges, or loads, that are deducted from the amount of your initial investment.

If I don't reply to your email, please don't get angry. It's because I can't help you. Some products on this site are only open to UK residents. Others are only available to 'First-world' countries; if you live in Columbia, you're out. I'm basically a one man band.

Definition: A bond is an IOU, with fixed interest. You are lending money to the issuer in exchange for a fixed rate of interest over a pre-defined period of time, with your original investment to be returned on a set date. Bonds are often called 'fixed-interest securities'.

The internet has made obtaining corporate bonds quotes a lot less time consuming than having to call around and wait for brokers to get back to you.

You can now obtain instant online pricing regarding corporate bonds compare hundreds of brokerages. You can surf for prices all day every day and contact as many different brokers as you like. Using online quotation services often result in much lower quotes as the broker overheads are reduced. All quotations should be free and without any obligation to buy.

You can make or lose money on bonds if you buy and sell before they mature. The amount you earn or lose depends on the bond's transaction costs, maturity date and interest rates. If you want to sell before it matures, you should check the bond market to find out how easy it is to sell it.