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Do fixed bonds have higher rates than bonds with fluctuating interest?
Wiki User
∙ 11y ago
Fixed bonds don't necessarily have higher rates than bonds with fluctuating interest. An interesting feature of bonds is that their rates tend to go down as interest rates in general go up. A fixed rate bond will yield the same return no matter what the economy does, but a fluctuating interest bond's rate could go up if the general interest rate goes down or vice versa. So really, the important determining factor of which type of bond performs better is the economy in general.
Wiki User
∙ 11y ago
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What are some types of income bonds?
Bonds are sometimes referred to as 'fixed-income securities' because the money a bond provides to it's investor is 'fixed' or 'pre-determined'. Types of income bonds include U.S. Treasury, Agency, Municipal, High Yield, and Corporate.
How many bonds does a buckminsterfullerene have?
Buckminsterfullerene comes in a variety of sizes and shapes; it does not have a fixed number of bonds. In this respect it is a lot like a polymer.
The carbon atoms in organic molecules are bonded to other atoms by?
Carbon atoms are fixed into organic compounds in The Calvin Cycle.
Why c c bonds in benzene are intermediate in length between single and double c c bonds?
Because in benzene molecule the pi electrons are delocalized (continuously changing their position within the hexagonal ring), so there are no fixed single and double bonds but are in mid of single and double bond character.
What is substance containing two or more elements chemically combined in a fixed ratio?
It is called a compound
Do bonds pay a variable interest rate monthly?
No, bonds pay a fixed amount of interest on a regular schedule.
What are the two different types of interest rates?
A fixed rate has the same rate of interest the entire life of the loan. A fluctuating rate varies with the prime interest rate.
What are fixed rate bonds?
Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.
What is true Rates of interest on bonds are fixed no matter what profits the corporation makes. Rates of interest on bonds vary based on the profits and losses of the corporation.?
Bonds may have fixed interest rates that stay the same throughout the life of the bond, or they may have floating rates that change.A corporate bond is a debt security issued by a corporation and sold to investors. Corporate bonds are considered to have a higher risk than government bonds.As the investor owns a bond, he receives interest from the issuer until the bond matures. At that point, the investor can reclaim the face value of the bond.
Def of fixed income?
A simpler answer: fixed income securities are bonds. These are "IOUs" where someone borrows your money and pays you interest, which is like "rent" on your money while they have the use of it. Hopefully, they will repay what they borrowed after the end of the loan term (this is called the "maturity date.") The oldest bond joke: "What's the difference between bonds and bond portfolio managers?" Answer: "In time, bonds mature." If there is risk that the borrower will not repay the loan, you will be paid a higher interest rate, and the greater the risk, the higher the interest rate on the bond. Bonds are issued by all levels of government, as well as by corporations. Home mortgages are also collected and the payments are used to pay bonds issued against them. There are more bonds than there are stocks, and the bond market is much larger than the stock market. Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. The different types of fixed income securities include government securities, corporate bonds, commercial paper, treasury bills, strips etc.
Will you earn a higher interest rate with a variable annuity than with a fixed annuity?
Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.
What is the interest rate on a corporate bond?
The prices of corporate bonds fluctuate as they are traded on the bond market. Like government bonds, a corporate bond pays a fixed amount of interest each .
Do long term municipal bonds face interest rate risk?
If they pay a fixed coupon, then yes.
Is cost of fruit a fixed cost?
Depending on the situation. At best it would be a fluctuating fixed cost.
In which type of investment do you lend your money to a government agency or a corporation for a fixed period of time and earn interest?
Bonds
Is the government bond the same as the fixed income securities?
Fixed Income Securities are investments in which the income or interest earning is fixed and can be predicted accurately. Bonds & Debt Mutual funds would come under Fixed Income Securities. Government Bonds are also one among the many Fixed Income Securities available for us to invest.
How is the current interest rate determined?
Many factors effect the interest rates. The Federal Reserve through the FOMC sets the discount rate. Market participants who buy and sell bonds also set the interest paid by such bonds and other fixed income instruments.
