1.   But unlike the situation with most other bonds, their entire principal can be forfeited to pay insurance claims if a big hurricane or earthquake hits.

2.   I suggest CDs at two different institutions, thus giving you federal insurance on your entire principal at each bank.

3.   Then they not only pay no interest, but the investor may lose the entire principal as well.

4.   Under balloon payments, a lower interest rate is paid for, perhaps, three or five years, and then the entire principal comes due.