Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Sign Up for Medicare

Sign Up for Medicare - Because there are many benefits to doing so, you should remember it is wise to sign up for Medicare even before you turn sixty-five and...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Bond Market Rate

Government and Corporations issue bonds to gain money, in exchange to promise to pay interest to the purchasers of the bonds. This is a safer method to save and grow your money, then buying stocks. or mutual funds. Bonds will pay a certain amount of interest that's predetermined. This ensures that the bond value will not decrease in value , like a stock will, if the market is soft, or the company is not doing so well.

Government bonds are sold to investors to help in the cost of running the government. Corporate bonds are sold to gain funds to grow the company, or to pay off debt. Both types agree to pay a certain interest payment to the purchaser.

Bonds are traded the same way regular stocks and money markets are traded, and the prices will vary just the same. Bond prices can be confusing because its very rare that the bond purchase to find the bond selling price, but it is important that the investor understands why the prices vary.

When a bond is sold, it is sold at a face value. This is the amount that bond holder is entitled to at the time of maturity. This face value does not include the coupon rate which is the amount of interest the bond will pay over the life of the bond. Fir instance if the Bond face value is $1000, and the coupon rate is 6 percent, the bond holder will receive $60 per year

Its important to know the difference between face value, and the price of the bond. Just like stocks, bonds on traded the same way. You can determine the selling price of a bond the same way as a stock. Newspapers, or online will list the selling price. If you see a figure such as , 9.500 next to a bond. (assuming the face value is $1000), this means the bond is selling at $950, or $500 less then its face value.

The coupon rate or the amount of interest that is paid is an important factor in the price, The higher the coupon rate the better the investment,. If the coupon rate tends to be lower the average interest rate, it's a riskier investment. The higher the coupon rate the better the possibilities are that the bond prices will be rise making it a better investment.

Discuss It!
1 2 >

visit url said:

Hey fellas you will learn here how to get free unlimited robux generator without spending any single amount.This generator is highly secured and safe to use.

Auther's homepage said:

Great information regarding this amazing tool. I would like to suggest this to everyone for roroblox robux generator and tickets generator.

robux generator said:

Very broadly elaborated, really good job on the article...

msp hack said:

And where can I find those coupons....thanks.

boom beach hack said:

The topic is on point... seems like you know your stuff.

best bait bass said:

Hi, thanks for the explanation yo give.

intensan sitio oficial said:

Very nice post, nice site anyway

perle blue said:

Vey interesting way to invest money.

The Fat Obliterator Program said:

Thanks for clearing this issue. Now I can invest in Bond Market Rate.

Noble Option opcje binarne said:

Great post! Thanks ;)||| said:

seems like you know your stuff.

dynamometer prices said:

Flawless offer of data here.I require this article to finish my attempt in the school, and it has same subject with your article.

gardencentreshopping.co.uk said:

This will be particularly gainful for me when I get an opportunity to begin my blog.

car cover said:

Keep doing awesome doing here I need to voice my energy for your sharpness in making and offering sees to individuals.

drywall said:

I found your site perfect for me. It combines magnificent and basic posts.

liverpool live stream said:

Site gave us gigantic information to work.You're really mind blowing and please keep up the most ideal work.

msp hack uden download said:

Very interesting post, like to read similar.

kupit' semena marihuany v ukraine odesse said:

Nice to know this new information for me, i search a lot to find it.

mobile app development said:

Your helpful storage space will be deliberately inspected, cleaned, and squashed utilizing the most stunning quality structures.

how to contact yahoo said:

You would prefer not to go insane and ensure your site is important to the answer you gave.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Interest-On-Interest Component

Interest-On-Interest Component - Interest-On-Interest Component is the portion of a stock certificate security's total returns that result from the stockholder reinvesting of the income generated by that stock certificate security. In the case of bonds, it refers to the stockholders reinvestment of the coupon interest received until the original bond...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com