Ok, so I've been investing for a few years now and I just realized that I don't know anything about bonds. So after a bit of reading, let's see if I figured them out correctly. Let's take this Starbucks bond as an example: http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C598631&symbol=SBUX4047665 So. Phew. Where do I start. Current price is $107 (I rounded off the cents to make it a better example) Call price is $100. Call date is 07/01/2023. Coupon rate is 3.85% Payment Frequency is Semi-Annual So assuming that today I will buy 100 of these, I will pay $10700. (plus commission to my broker) From here on, all the way to 07/01/2023, I will get $385 per year as interest. [$100 (call price) x 3.85% (coupon rate) = $3.85 per bond. x 100 because I bought 100 bonds) This interest will be paid twice a year so that means $192.5 per payment. Where can I get these payment dates? On 07/01/2023, when the bond expires, I will receive $10000. [$100 (call price) x 100 (amount owned) So I pay $10700 now, get $385 for 8 years (roughly 8 years left before maturity) and I get $10000 back in the end. So $10000 + (8x $385) - $10700 = $2380 of profit before tax and commission. This income is certain, unless Starbucks goes belly-up or chooses to recall the bonds. (as this bond is callable) If they choose to recall the bonds, I get $100 per bond (call price) and obviously the interest for the time between tomorrow and their recall date. So, are all (or at least most? ) of my assumptions correct? Provided that I do not wish to sell these bonds before the call date, is there anything else that I need to worry about? Anything important that I missed?