Bonds

While both taxable and tax-exempt municipal bonds are available, tax-exempt bonds tend to get the most attention since the income they create is tax-free for most investors, including federal, state, and local income taxes in many circumstances. What is the average yield on tax-exempt municipal bonds? The top five municipal bond funds are ranked by […]

Treasury bonds (T-bonds) are fixed-rate debt instruments issued by the United States government with maturities ranging from 10 to 30 years. T-bonds pay semiannual interest until they mature, at which point the owner receives the face amount of the bond. Treasury bonds are one of four essentially risk-free government-issued securities, along with Treasury bills, Treasury

If you’ve ever looked into pest control services, you’ve probably come across the term “termite bonds.” What exactly is this bond, and when will you require it? We’ve put up a list of frequently asked questions for you! A termite bond, similar to a maintenance contract, is a guaranty between you and a termite provider.

TIPS (Treasury Inflation-Protected Securities) give inflation protection. As assessed by the Consumer Price Index, the principal of a TIPS increases with inflation and falls with deflation. When a TIPS matures, the adjusted principal or the original principal, whichever is greater, is paid to you. TIPS pay a fixed rate of interest twice a year. Because

The victim of abuse may develop sympathy for the perpetrator, which is reinforced by vicious cycles followed by remorse. One sort of trauma bonding is Stockholm syndrome. This article discusses what trauma bonding is, when it happens, and how to start the healing process. How do trauma attachments form? Trauma bonding is an abused person’s

A sovereign bond works similarly to a standard bond in that the buyer receives periodic interest payments from the issuer, in this case the government, and is repaid the face value of the bond when it matures. Are government bonds secure? In November 2015, the Indian government launched the Sovereign Gold Bond (SGB) Scheme to

Economic development, competing currencies, and hedging options are all reasons that drive demand for Treasuries. Remember that anything that increases demand for long-term Treasury bonds tends to lower interest rates (higher demand = higher price = lower yield or interest rates), while anything that decreases demand for bonds tends to raise interest rates (lower demand

Bond financing is a sort of long-term borrowing that is widely used by state and local governments to raise funds, mainly for long-term infrastructure assets. This money is obtained by selling bonds to investors. In exchange, they agree to repay the funds, plus interest, according to predetermined timelines. Is it wise to invest in state

Mortgage interest rates and bond prices have an inverse relationship. Mortgage interest rates fall as bond prices rise, and vice versa. This is due to the fact that mortgage lenders’ interest rates are closely linked to Treasury bond rates. What effect does the 10-year Treasury have on mortgage rates? So, what are the similarities and

When governments and enterprises need to raise funds, they issue bonds. You’re giving the issuer a loan when you buy a bond, and they pledge to pay you back the face value of the loan on a particular date, as well as periodic interest payments, usually twice a year. Bonds issued by firms, unlike stocks,