Bonds

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

Consider the following scenario: You purchase a $5,000 10-year Government of Canada bond. The bond pays a fixed annual interest rate of 4%. If you keep the bond until it matures, you’ll be able to: “Floating interest bonds have an interest rate that is equal to the rate on 3-month T-bills. They pay interest every

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

A bond is a fixed-income security that represents an investor’s debt to a borrower (typically corporate or governmental). A bond can be regarded of as a promissory note between the lender and the borrower that outlines the loan’s terms and installments. Companies, municipalities, states, and sovereign governments all use bonds to fund projects and operations.

Long-term financing agreements between a borrower and a lender are known as bonds. When the bond matures (its term ends), the corporation pays the bondholder the face value of the bond. Depending on whose side of the transaction you’re looking at, a bond is either a source of finance or an investment. What is a

The bond pays a fixed annual interest rate of 4%. You’ll earn $5,000 back if you hold the bond until it matures. A year later, you’ll receive 4% interest, or $200. Is it wise to invest in Canadian bonds? Bonds issued by the Government of Canada offer significant returns and are backed by the federal

Bonds, also known as fixed-income instruments, are one of the most common asset classes that individual investors are familiar with, alongside stocks (equities) and cash equivalents. Bonds can cause you to lose money. If the unpredictability of the stock market doesn’t appeal to you, bonds are a terrific alternative because you’ll know what your return