Bonds

Interest earned on EE US savings bonds is taxed at the federal level, but not at the state or municipal level. The amount that a bond can be redeemed for over its face value or original purchase price is the interest it earns. The interest on savings bonds is subject to federal gift, estate, and […]

In comparison to the past, Treasury bonds do not currently pay a high rate of interest. With interest rates still around all-time lows, this is not the best moment to invest in Treasury bonds and receive substantial interest payments. However, as inflation rises, investors may be willing to pay more for government assets. Many people

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,

Bonds have a fixed face value and trade at par when the current price matches the face value. When the current price of a bond is more than the face value, it is called a premium. A $1,000 face value bond selling for $1,200, for example, is trading at a premium. Discount bonds, on the

Federal income from state, city, and local government bonds (municipal bonds, or munis) is normally tax-free. However, you must record this income when you file your taxes. In most cases, municipal bond income is tax-free in the state where the bond was issued. However, take in mind the following: Occasionally, a state that normally taxes

State and municipal taxes are not levied on Series I savings bonds. You won’t have to pay state or local taxes on the interest income you earn if you invest in Series I savings bonds. That means you’ll have more money in your pocket at the end of the year than if you owned a

Bond mutual funds typically generate consistent income from a diverse portfolio of securities. As a result, the income tax rate is determined by the securities held by the fund. Furthermore, because fund managers buy and sell bonds on a regular basis, there may be capital gains and losses. Bond funds distribute interest and capital gains

Junk bonds have a higher profit potential than regular bonds. Junk bonds have higher yields than investment-grade bonds due to the heightened risk. If an issuer’s performance improves, bonds may gain value. When a corporation is actively paying down debt and improving its performance, the bond’s value might rise as the rating of the issuing

A bond, like an IOU, is a debt commitment. When investors purchase corporate bonds, they are effectively lending money to the firm that is issuing the bond. In exchange, the corporation agrees to pay interest on the principal and, in most situations, to repay the principal when the bond matures or comes due. Is it

Municipal bonds were one of the most stable fixed income asset classes in 2021, with positive returns and minimal volatility across a wide range of credit and maturity. New issuance slightly exceeded the record set in 2020, but supply was quickly absorbed by surprisingly continuous fund inflows. Record state and local revenues, stimulus spending, minimal