When bonds are used as investment tools, their returns are higher than bank deposits and they have strong liquidity.

How should a company prepare accounting entries when investing in bonds?

In the bond investment entry, if the purchase price paid includes interest that has reached the interest payment period but has not yet been collected, the "interest receivable" account should be debited, and the accounting entry is: Debit: Held-to-maturity investment - cost

Interest receivable Loan: Bank deposit When interest is received: Debit: Bank deposit Loan: Interest receivable What does bond investment mean?

Bond investment specifically refers to an investment method in which bond buyers (investors, creditors) invest capital in the form of purchasing bonds, collect fixed interest from the bond issuer (borrower, debtor) and recover the principal upon maturity.

Bond investors are mainly divided into: insurance companies, commercial banks, investment companies, investment banks, and various fund organizations.

Bonds are divided into three categories by issuer: government bonds, corporate bonds, and financial bonds.

Features of bonds: high security, higher returns than bank deposits, and strong liquidity.

Factors affecting bond investment returns: bond coupon rate; market interest rate and bond price; bond investment cost; market supply and demand, monetary policy and fiscal policy.

What are the main risks of bond investment?

Bond investment risks mainly manifest in two aspects: 1. Changes in interest rates cause changes in bond prices and yields; 2. Bond market prices are volatile. If its changes are inconsistent with investors’ predictions, investor capital will inevitably suffer

loss.