Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Get a Professional Certificate

Get a Professional Certificate - When you decide which profession you wish to enter, you should check first to see if your chosen field offers a certificate. If it does...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Interest Rate Treasury Bond

There are many ways to invest your money. Some chose to simply put their money in a savings account, where very little interest is accumulated. Other choose to buy stocks , or mutual funds, which pay higher dividends but come with greater risks,. Another safer way to invest it to purchase government bonds.

A government bond is simply a debt fund. Investors purchase the bonds where the money is used to run the government or for other government programs. In turn the purchaser is entitled to receiving a predetermined interest rate. A government bond is simply an IOU. They promise to pay the investor back with interest for a certain amount of years. This a safer way to invest your money with little or no risk at all.

Government bonds have two types of interest rates. One is called the "fixed rate" The fixed rate is announced and determined each May and November bye the Secretary of the Treasury. This rate remains in affect for the life of the bond. It also applies to all bonds within the sis month period of the time of the announcement. The fixed rate is always equal to, or greater then zero percent.

The second type of interest rate is called the "Inflation Rate". This rate is also determined every May, and November, just like the flat rate, also by the Secretary of the Treasury. The inflation rate is based on the current market conditions, and economic conditions. The inflation rate is used in conjunction with the flat interest rate to determine the exact interest rate for the bond, for the next six months

In some cases the inflation rate may be a negative number because of strong market conditions. Negative inflation rates are used the same as inflation rates. However if the negative number is so high that it offsets the fixed rate, the interest rate will not be less the previous six months. This is to protect the bond holders so they still accumulate some interest. The bond rates change every six months no matter what type of bond you invest in. No matter what the market conditions are Savings bonds have always been a good and safe way to invest you money, with little or no risk,.

Discuss It!

192.168.1.1|192.168.1.1|192.168.1.1|192.168.1.1 said:

No matter what the market conditions are Savings bonds have always been a good and safe way to invest you money, with little or no risk,.

sprint customer service number said:

Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work!

richestcelebrities.org/richest-ceos/ said:

Exceptional web diary. I perceived examining your articles. This is truly a pivotal read for me.

https://www.youtube.com/watch?v=9c9u3wmkzdE said:

You have made an astounding showing up ! You completed certain strong concentrations there.

more info here said:

I discovered this much illuminating, regarding what I was completely looking for after down. An affirmation of appreciation is all together to share such post and please keep it up.

scooterism.co.uk said:

I need to thankful. I found such a mix of engaging stuff in your site, especially its examination.

Zeal protein said:

Awe-inspiring work. I am going to bookmark your site and keep up looking new of the case new information.

Grow mushrooms said:

Loads of obliging data and motivation, both of which we by and large in all in with everything considered require !Relay welcome your work.

Custom Stickers said:

Shocking learning you have on this present, Hail your work and continue offering your information.

free tour stockholm said:

This will be to an exceptional degree proceeding for me when I get a chance to start my blog I starting late kept pursuing a brief timeframe your web diary and have been evaluating along.

getessaynow.com/write-my-essay said:

I appreciate that you're phenomenal learning in playing with each one of the pieces was especially useful.

Cheap Bajuband said:

Your Article inspire to me.thanks to share it.

how to get more followers on instagram | get likes on instagram said:

To accomplish that easily web indexes offer you an astounding plausibility.

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Black Tuesday

Black Tuesday - Black Tuesday took place on October 29 in the year 1929 and was probably the most famous stock market crash ever to be remembered in stock market history. On this day, the stock market's stocks lost 13 percent of their value and...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com