Bonds represent a loan made to the issuer of the bond. Bonds can be taxable or tax-exempt and are issued by a corporation, the United States government, a United States government agency or municipality.

Typically, bonds pay a fixed rate of interest at regular intervals and have a definite maturity date. Once a bond matures, unless the bond is redeemed prior to maturity by the issuer, the investor is typically paid the face value of the bond.

Available through the Northwestern Mutual Investment Services, LLC (NMIS) trading services desk.

Please be aware that the credit risk or risk of default, associated with a particular issuer may affect the safety of the invested principal. High yield bonds present greater credit risk than bonds of higher quality.

Interest rate risk is the risk that changes in interest rates during the term of the bond might affect the market value of the bond prior to the call or maturity date. Bond prices correlate inversely with interest rates and this effect may be more pronounced for longer-term bonds which could make their prices more volatile. For example, when interest rates rise, the market value of the bond declines, which could negatively affect overall performance.

For additional information on municipal bonds and their features, benefits and risks, read Municipal Bonds. For additional information on corporate bonds and their features, benefits and risks, read Corporate Bonds.

All securities are offered through Northwestern Mutual Investment Services LLC, (NMIS), Suite 600, 611 E. Wisconsin Avenue, Milwaukee, WI 53202, 1-866-664-7737. Member FINRA and SIPC. NMIS is wholly owned by Northwestern Mutual.

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