Bonds

A corporate bond is a loan given to a firm for a specific length of time. In exchange, the corporation promises to pay interest (usually twice a year) and subsequently refund the bond’s face value when it matures. As an example, consider a conventional fixed-rate bond. If you put $1,000 into a 10-year bond with […]

Bonds issued by the state are known as general obligation bonds “California’s “full faith and credit” “The term “full faith and credit” refers to the issuer’s promise to repay the bonds with all legally available funds. Local entities, such as schools, frequently issue GO bonds that are solely repaid from the issuer’s property taxes. How

A convertible bond is a fixed-income corporate financial investment that pays interest but can be exchanged into a set number of common stock or equity shares at a later date. Converting a bond to stock can be done at any time throughout the bond’s life and is normally done at the bondholder’s choice. Is it

Canada Savings Bonds (CSB) were a type of government debt that was sold to Canadian residents to help support government spending. CSBs are available in denominations as low as $100 CAD and feature a 10-year maturity period with a fixed rate for the first year and a variable rate for the subsequent years. CSBs were

When you purchase a share of common stock, you become an owner of the company and are entitled to any dividends declared and paid by it. You do not possess ownership in a corporation when you purchase a corporate bond. What makes corporate bonds and corporate stocks different? A stock market is a location where

A cash bond is exactly what it sounds like: you pay the court the full sum of the defendant’s bail in cash to secure the bond. You’re obtaining a bond in exchange for the defendant’s release when you pay the court. Essentially, you’re betting money that the offender will appear in court as scheduled. The

Whether you have a paper or electronic savings bond will determine where you can cash it in. Paper bonds Your bank or credit union should be able to cash in your paper savings bonds. If you’re going to a financial institution where you’re not a member or customer, check to see if they’ll cash your

A cash bond is exactly what it sounds like: you pay the court the full sum of the defendant’s bail in cash to secure the bond. You’re obtaining a bond in exchange for the defendant’s release when you pay the court. Essentially, you’re betting money that the offender will appear in court as scheduled. The

A catastrophe bond (CAT) is a high-yield financing instrument designed to help insurance companies raise money in the case of a natural disaster. A CAT bond allows the issuer to obtain funds only if certain events, such as an earthquake or tornado, occur. The need to pay interest and refund the principal is either suspended

Bonds are essentially a sort of borrowing, similar to CDs. A bondholder lends money to a government or corporation that issues the bond for a specified period of time in exchange for a set amount of interest. What is the difference between CDs and bonds? Bonds and certificates of deposit (CDs) are both debt-based fixed-income