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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.
Wiki User
∙ 15y ago
Wiki User
∙ 11y agoFixed rate bonds are bond which pay a fixed interest rate. Typically most bonds today are fixed rate bond. An example of a fixed rate bond would be your typical municipal bond.
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What is the difference between a fixed rate bond and a floating rate bond?
"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."
How does one apply for a fixed rate bond?
"Fixed rate bonds can be applied for at a person's local bank. That is probably the first place that one should look for a fixed rate bond, but research can be done to find other sources."
What is the definition of a term deposit rate?
The definition of term deposit rate is a deposit held in a financial institute at a fixed rate. Such as a cd that banks offer or bonds.
Where can one buy savings bonds with the best interest rates?
Money Co Uk offers the service to compare the best fixed rate bonds available in the UK and also find a fixed rate saving bond that suits your saving needs - also one that pays you a high interest rate. The website makes it easy for users to find a bond that it's right.
Which of these government securities pay a fixed rate of interest every six months until they mature at thirty years?
treasury bonds
What is the current rate payed on municipal bonds?
It depends on the bond, there is no fixed rate.
Where online can a person learn about the best fixed rate bonds?
A person can learn about the best fixed rate bonds by using guidance booklets or PDF files as well as guidance websites. Also, one could go to their local bank branch for more updated detailed information about fixed rate bonds.
What is the difference between a fixed rate bond and a floating rate bond?
"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."
Do bonds pay a variable interest rate monthly?
No, bonds pay a fixed amount of interest on a regular schedule.
How does one apply for a fixed rate bond?
"Fixed rate bonds can be applied for at a person's local bank. That is probably the first place that one should look for a fixed rate bond, but research can be done to find other sources."
What factors may cause a change in the market and fair value of fixed rate notes and bonds?
One of the key factors that can change the market and fair value of fixed rate notes and bonds is an increase or decrease in market interest rates. Even though a bond has a fixed rate, it's value is dependent on current yields in the market and the value of the bond will move inversely to interest rate changes.
What is the definition of a term deposit rate?
The definition of term deposit rate is a deposit held in a financial institute at a fixed rate. Such as a cd that banks offer or bonds.
Do fixed bonds have higher rates than bonds with fluctuating interest?
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.
Do long term municipal bonds face interest rate risk?
If they pay a fixed coupon, then yes.
How is coupon rate calculated on FRN instrument?
FRN are bonds that have variable coupon. The Floating Rate Notes are calculated by adding the spread to the fixed reference rate for that day.
What are the benefits of fixed rate bonds?
They will earn interest over time, and will hopefully appreciate in value over time as well.
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 .
