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Are short term bonds less risky then long term bonds?
Generally, yes.
Are treasury bonds more risky than municipal bonds?
Treasury bonds are generally considered less risky than municipal bonds because they are backed by the full faith and credit of the U.S. government, which has a low risk of default. In contrast, municipal bonds are issued by state and local governments, and while they can offer tax advantages, their risk can vary based on the issuer's financial health. However, individual circumstances and market conditions can affect the relative risk of each bond type. Overall, investors should assess their risk tolerance and investment goals when comparing these bonds.
What are the key differences between revenue bonds and general obligation bonds in terms of their impact on a municipality's financial health and ability to repay debt?
Revenue bonds are backed by specific revenue sources, such as tolls or fees from a project they fund, and do not impact a municipality's overall financial health. General obligation bonds are backed by the municipality's full faith and credit, potentially impacting its financial health if not managed properly. Revenue bonds are generally considered less risky for a municipality's ability to repay debt compared to general obligation bonds.
What are the key differences between revenue bonds and general obligation bonds in terms of their impact on a municipality's financial obligations and ability to generate revenue?
Revenue bonds are backed by the revenue generated from a specific project or source, such as tolls or utility fees, and do not impact a municipality's general funds. General obligation bonds, on the other hand, are backed by the full faith and credit of the municipality, potentially impacting its overall financial obligations. Revenue bonds are typically considered less risky as they rely on specific revenue streams, while general obligation bonds may have a broader impact on a municipality's ability to generate revenue.
What are the key differences between a bond and a stock, specifically in terms of their characteristics and how they function within the financial markets?
Bonds are debt securities issued by companies or governments, while stocks represent ownership in a company. Bonds pay fixed interest and have a maturity date, while stocks offer ownership in a company and potential dividends. Bonds are considered less risky than stocks but offer lower returns. In the financial markets, bonds are traded in the bond market, while stocks are traded in the stock market.
Does these provisios make bonds more or less risky?
Provisions in bonds can make them either more or less risky, depending on the specific details. For example, call provisions can make a bond more risky for investors as they allow the issuer to redeem the bond early. Conversely, provisions like sinking funds can make a bond less risky by requiring the issuer to set aside money to repay the bond at maturity.
Are short term bonds less risky then long term bonds?
Generally, yes.
Call provision or sinking fund make bond more or less risky?
A call provision can make a bond more risky for the investor because it gives the issuer the option to redeem the bond at a predetermined price before maturity, potentially preventing the investor from earning interest for the full term. On the other hand, a sinking fund provision can make a bond less risky for investors as it requires the issuer to set aside money regularly to retire a portion of the bond issue before maturity, reducing the overall outstanding debt and default risk.
What happens when a yield to maturity is less than the yield to call?
The issuer will call the bonds and issue new bonds to the maturity date.
What is better for retirement stocks or bonds?
If you're a long way from retirement, stocks (riskier) is probably better. As you get closer to retirement, high grade, short term bonds (less risky) are better.
Difference between financial risk and return?
In the financial world, more risk equals more return. Less risk equals less return. That is why you see Greece right now paying very high yields on their bonds (it is very risky to invest in a Greek bond right now because they could possibly default). If you buy a basket of 10 risky stocks, and then buy a basket of 10 low-risk stocks, the risky stocks will usually outperform the less risky stocks.
Are treasury bonds more risky than municipal bonds?
Treasury bonds are generally considered less risky than municipal bonds because they are backed by the full faith and credit of the U.S. government, which has a low risk of default. In contrast, municipal bonds are issued by state and local governments, and while they can offer tax advantages, their risk can vary based on the issuer's financial health. However, individual circumstances and market conditions can affect the relative risk of each bond type. Overall, investors should assess their risk tolerance and investment goals when comparing these bonds.
Is a tubal ligation more risky at age 25?
It is risky at any age. It is most recommended by doctors that the man get a vasectomy rather than the woman get a tubal ligation. The recovery time is less for men and it is less risky since there are fewer tubes and less chance of complications.
What are advantages and disadvantages of organic conductors?
less risky
What is difference between provision liability and continget liability?
A provision is when it's grater than 50% chance of happening where as a contingent is less than that. You show a provision on the accounts but not the contingent.
Are women less likely to be risky choices for childcare providers?
No,
Why are bonds evaluated by rating agencies?
Bonds are evaluated by rating agencies to assess the creditworthiness of the issuer. The ratings help investors gauge the risk associated with investing in a particular bond. Higher-rated bonds are considered less risky and typically offer lower interest rates, while lower-rated bonds are riskier with higher potential returns.
