Investment

There is a pressing demand for investment in transportation capital infrastructure improvements, which much outnumbers available funds. According to estimates, $51.6 billion per year will be required over the next 20 years to maintain the existing state and performance of the roadway system. This requirement compared to expected spending of $38.7 billion each year, resulting […]

A trash bond, like any other bond, is a debt investment. A corporation or government generates funds by issuing IOUs that specify the amount of money it is borrowing (principal), the date it will return your money (maturity date), and the interest rate (coupon) it will pay you on the borrowed funds. The interest rate […]

Bond yield curves are normally regular in a healthy economy, with longer-term maturities paying greater yields than shorter-term maturities. Long bonds have the benefit of a fixed rate of interest throughout time. They do, however, come with a chance of not lasting. When an investor keeps a long-term bond, he or she becomes more vulnerable […]

Bond prices, on the other hand, tend to rise when interest rates decline. Investors are less inclined to purchase new bonds as interest rates fall and new bonds with lower yields than older fixed-income instruments are launched in the market. As a result, the price of older bonds with greater yields tends to rise. When […]

When you buy a savings bond in the United States, you’re essentially lending money to the government. The United States Treasury issues bonds, with the federal government guaranteeing that you will receive your money back. When a bond matures and no longer generates interest, it’s time to cash it in — or reinvest the proceeds. […]

A mortgage bond is backed by a mortgage (or a group of mortgages) that is often backed by real estate assets and real property, such as equipment. How do mortgage bonds generate revenue? A mortgage-backed securities (MBS) is a type of bond made up of the interest and principal from home loans. A corporation or […]

Municipal bonds are worth considering if your primary investing goal is to protect capital while receiving a tax-free income stream. Municipal bonds (also known as munis) are debt obligations issued by government agencies. When you purchase a municipal bond, you are essentially lending money to the issuer in exchange for a specified number of interest […]

Municipal bonds pay lower interest rates than taxable bonds because they create tax-free income. The higher yield provided from taxable bonds may be better suited to investors who anticipate a big decline in their marginal income-tax rate. Do municipal bonds have a monthly payment? The Tax Benefits of Municipal Bonds The majority of municipal bonds […]

The majority of municipal bonds have a set interest rate. This rate remains constant during the bond’s life. However, market conditions will cause the underlying price of a bond to change in the secondary market. The key factors influencing municipal bond secondary market values are changes in interest rates and interest rate expectations. Do municipal […]

Municipal bonds are worth considering if your primary investing goal is to protect capital while receiving a tax-free income stream. Municipal bonds (also known as munis) are debt obligations issued by government agencies. When you purchase a municipal bond, you are essentially lending money to the issuer in exchange for a specified number of interest […]