Bonds

Investors can engage in both the new issue and secondary bond markets through Fidelity. When engaging in new issue offerings, investors pay no fees or concessions, but Fidelity charges a mark-up (for buys) or a mark-down (for sells) in the secondary market. (For further information, see the Fidelity Brokerage Commission & Fee Schedule (PDF).) The […]

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. Is it wise to invest in high-yield bonds? A bond’s yield is determined by the

Even if you’re new to fixed-income investing, our simple online quiz can help you find bonds and CDs quickly. Create your own bond ladder by analyzing average price, yield, coupon rate, and cash flow using advanced portfolio analysis tools. In just one simple step, you may buy your chosen bonds and CDs, as well as

Housing bonds are typically low-interest bonds that can be issued as a fixed-rate or variable-rate demand obligation (VRDO). Bondholders are paid principle and interest from pledged mortgage repayments and investment earnings. Borrower mortgage repayments are collected by the housing bond trustee, who invests the proceeds in short-term investments until the time comes to pay interest

Premium Bonds can be purchased through our safe online system. Please have your debit card information handy. You can buy Premium Bonds by bank transfer if you or the child you’re buying for already have some (including standing order). How do I increase the value of my Premium Bonds? A bank transfer may be the

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

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

Savings bonds are debt securities issued by the United States government to cover its borrowing needs. When you buy a savings bond in the United States, you’re effectively lending your money to the government at a certain interest rate, and the government is responsible for returning the loan in full – principle plus interest. Because

A bond is just a debt that a firm takes out. Rather than going to a bank, the company obtains funds from investors who purchase its bonds. The corporation pays an interest coupon in exchange for the capital, which is the annual interest rate paid on a bond stated as a percentage of the face

Fixed-income securities are debt instruments that pay a fixed rate of interest to investors in the form of coupon payments. Interest is normally paid twice a year, with the principal invested returning to the investor at maturity. Fixed-income assets, such as bonds, are the most frequent. Firms raise funds by selling fixed-income securities to investors.