Bond Definitions
A bond is a debt security that is run by a government or agency. It usually lasts for long periods of time, or durations, which will take longer to mature. There are many important bond definitions that you should know.The first bond definition you need to know is that of a bond fund. This is a type of mutual fund where you invest in bonds. You can invest in bonds of different values, including a baby bond that has a face value of less than a thousand dollars. Also, your bond will feature a Committee on Uniform Security Identification Procedure number for identificatio ...
read more>> |
|
|
Bonds or Stocks?
Bonds may not be as visible in the media as stocks. There’s a lot more excitement that surrounds the area of stocks which makes them written about in the press a lot more. In fact, there are investors who have never heard of a bond even though they may have dabbled in the stock market and even looked at instruments like traded funds and futures. However, the fact remains that though bonds might not be as high profile and very often bring in lower returns, they are probably safer and healthier. Stocks have a certain thrill that comes attached with them. Picture yo ...
read more>> |
|
|
Calculating Bond Yields
Few investors trade in order to lose money. For those seeking to make a profit, comparing the potential returns over different time spans of different instruments is essential. In that effort, calculating yield is central.The most general meaning of yield is the amount of money returned (usually annually), expressed as a percentage of the initial investment.CURRENT YIELDEstimating current yield on a bond is simple. Divide the annual interest amount paid by the current market price. CY = IA/P*100. (The 100 turns the fraction into a percentage.) For example, a $1000 face ...
read more>> |
|
Home