The Money Farm Team

Intermediate debt, often known as medium-term debt, refers to bonds with maturities ranging from two to ten years. These fixed income instruments have yields that are between between short- and long-term loans. With the recent drop in long-term debt issuance, issuers and investors have placed a larger emphasis on medium-term debt. How do intermediate bond […]

A particularly developed savings and investment product that allows investors to cover the education expenses of a kid or student of any age with greater choice and freedom. What is a bond for investment? An investment bond is a single-premium life insurance policy that can be used to hold investments in a tax-efficient manner. The

Income Bonds are a sort of investment that pays the holder interest on a regular basis. You can invest anywhere between £500 and £1 million in total across all of your Income Bonds accounts. You can also get your money back at any time, with no notice or penalties. Interest is deposited into your bank

A bond is an interest-bearing asset that requires the issuer to pay the bondholder a certain amount of money at regular intervals (known as a coupon) and to repay the loan principle at maturity. At maturity, zero-coupon bonds pay both the imputed interest and the principal. What exactly are interest-bearing assets? They are long-term investments

The high-yield muni market is substantially smaller than the investment-grade market in terms of liquidity. It has a lot less “liquid” in it. This translates to fewer trade volumes. This isn’t a concern for investors in mutual funds or exchange-traded funds (ETFs); it only applies to investors in individual stocks. However, when bond prices fall,

For many bonds, an ISIN number is required. What about historic bonds, though? Gold Bonds from the past are valuable collectibles. There are many different types of historic bonds that were issued to fund various construction projects or private corporate operations, such as railroads. Some are uncommon, and collectors, traders, vendors, and purchasers will pay

Bonds issued or guaranteed by U.S. federal government agencies are referred to as “agencies,” as are bonds issued by government-sponsored enterprises (GSEs), which are organizations founded by Congress to promote a public purpose, such as affordable housing. Bonds issued or guaranteed by federal entities such as the Government National Mortgage Association (Ginnie Mae), like Treasuries,

From the first day of the month after the issue date, an I bond earns interest on a monthly basis. Interest is compounded (added to the bond) until the bond reaches 30 years or you cash it in, whichever happens first. Interest is compounded twice a year. Interest generated in the previous six months is

Bonds rated Baa (by Moody’s) or BBB (by S&P and Fitch) or above are thought to have a lesser risk of default and obtain higher ratings from credit rating organizations. The yields on these bonds are often lower than those on less creditworthy bonds. What is the definition of a high-grade bond? Bonds rated Baa

Because they have weaker credit ratings than investment-grade bonds, high-yield bonds (also known as trash bonds) pay higher interest rates. Because high-yield bonds are more likely to default than investment-grade bonds, they must offer a higher yield to compensate investors. What is the trash bond yield? Junk bonds have generally yielded 4% to 6% more