Treasury notes and bonds are securities that pay a predetermined rate of interest every six months until they mature, at which point Treasury pays the par value of the instrument. … Interest payments on the security will rise as interest rates rise. In the same way, when interest rates decline, so will the security’s interest […]

In about 30 years, most savings bonds stop earning interest (or achieve maturity). A savings bond can be redeemed as soon as one year after purchase, but it’s normally best to wait at least five years so you don’t miss out on the last three months of interest. If you redeem a bond after 24 […]

Savings bonds are regarded as one of the most secure investments available. The underlying principle is that the value of a savings bond grows over time, but it’s easy to lose track of how much it’s worth over time. The TreasuryDirect savings bond calculator, fortunately, makes determining the value of a purchased savings bond a […]

It increases in value each year by the amount of interest, or coupons, earned until you cash it in or it reaches 30 years from the date of issue. When EE savings bonds age, what happens? You might have some Series EE savings bonds that you acquired a long time ago. Maybe you keep them […]

A bail bond is a payment made to the jail in order for a defendant to be released from custody until their court appearance. If a defendant cannot afford bail, he or she will be held in custody until their court appearance. You do have the option of paying the full sum of bail in […]

Bail bonds enable a defendant to post bail that he or she would not have been able to afford otherwise. On the defendant’s behalf, the bail bondsman posts the entire amount. The defendant pays a percentage of the bail amount – usually 10% – to the bail bondsman. This is a non-refundable payment. The bond […]

The annual interest paid on a bond between its issue date and maturity date is referred to as a coupon payment. The coupon rate is calculated by adding all of the coupons paid each year and then dividing that number by the bond’s face value. What is the frequency of coupon bond payments? The majority […]

Municipal bonds (also known as municipal debt) are a type of debt “State, city, county, and other local agencies issue debt securities to support day-to-day commitments as well as capital projects such as the construction of schools, roadways, and sewer systems. When you buy municipal bonds, you’re effectively lending money to the bond issuer in […]

J. P. Morgan, a well-known investor, is reputed to have observed: “You can’t afford a boat if you have to??? what it costs to run one.” Many individuals today believe that a statement similar to this may be made about joining a country club. The cost of country club membership can range from less than […]

Stocks provide ownership of a company as well as a share of any cash dividends (‘Dividends’). Bonds allow you to participate in lending to a business but do not give you ownership. Instead, the buyer of a Bond receives periodic payments of Interest and Principal. What is the difference between corporate bonds and corporate stocks? […]