Bonds

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 […]

Spain occupied Puerto Rico beginning in 1493, when Christopher Columbus arrived on the island. Puerto Rico was ceded to the United States after the end of the Spanish–American War in 1898. The US then refused to pay the colony’s creditors, claiming they were owed a dreadful amount. Before 1898, the people of Puerto Rico had

Most bonds with stronger credit ratings have a lower probability of default than junk bonds. Because of the uncertainty surrounding the issuer’s financial performance, junk bond values can be volatile. Active junk bond markets can signal an overbought market, implying that investors are overconfident in their risk tolerance, which could lead to market downturns. Junk

Bond interest paid by your corporation is tax deductible. It appears on your balance sheet and on Schedule C, which is attached to your tax return, as interest expenditure. The Internal Revenue Service (IRS) is unlikely to query interest expense because it is a recognized deduction. Is bond interest tax-free? Because of the significant tax

Following the purchase, the customer is now responsible for paying the insurance carrier’s premiums. The customer pays more than the surrender value but less than the projected benefits for the life insurance policy. The buyer gains from the transaction since the predicted returns/benefits are aligned with the original policyholder’s life expectancy. How an L Bond

Bond issuers borrow money from bond purchasers and pay interest on that debt. Although some bond issuers pay all of the interest at maturity, this interest is normally paid monthly, quarterly, or annually. Bond funds hold tens of thousands of bonds and loan agreements, often known as debt securities. Interest payments are usually distributed to

You’re covered by the Financial Services Compensation Scheme if we can’t repay your money (FSCS). Up to a certain point, you’d get your money back. The Financial Services Compensation Scheme (FSCS) exists to protect savers if their bank or other financial provider is unable or likely to become unable to pay out on any claims

Long-term care may be required when people become ill or disabled to the point where they are unable to care for themselves (with the likelihood that the disability will last for a long time). According to the Association of British Insurers, a person reaching 65 today has a nearly 75% likelihood of requiring long-term care

When a beneficiary inherits real estate, individual stocks, or other assets that have gained in value, the recipient will receive a step-up in basis on those accounts or assets, allowing the inheritance to be sold without paying income tax. Taxes on Inherited U.S. Savings Bonds The taxation of U.S. Savings Bonds is complicated since it

The majority of bonds are taxed. Only municipal bonds (bonds issued by local and state governments) are generally tax-exempt, and even then, specific regulations may apply. You must pay tax on both interest payments and on capital gains if you redeem the bond before its maturity date. What is the tax treatment of an investment