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"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."

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Q: What is the difference between a fixed rate bond and a floating rate bond?
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What is the difference between a letter of credit and a supercedeas bond?

is a letter of credit considered the same as a supercedeas bond?


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.


Difference between bond agreement and bond indenture?

What is the difference between a bond agreement and a bond indenture?Bond Agreement: A contract for privately placed debt.Bond Indenture: A blanket agreement between a corporation and its bond holders that states the interest rate, maturity date, and other terms and conditions of the bond issue.Based on these two definitions a bond agreement is more of a private agreement between the company and the bond purchaser where the bond indenture is more of a legal agreement. Bond agreement could get complicated if it isn't a trusted person where the bond indenture appears as a contractual agreement to keep people honest.


What is the current best fixed rate bond?

The current best fixed rate bond will depend on one's location and their personal preference. In the UK one can get a 9 month fixed rate bond at just 0.75% and that is the lowest rate.


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.

Related questions

Is the term for a bond between two atoms that differ in electronegativity?

If there is a slight electronegativity difference, the bond is a nonpolar covalent bond. If there is a large electronegativity difference, it is an ionic bond. If the difference is somewhere between, it is a polar covalent bond.


How can the type of bond be predicted?

Ionic bond: the difference between electronegativities of the atoms is over 2.Covalent polar bond: the difference between electronegativities of the atoms is under 2.Covalent non-polar bond: the difference between electronegativities of the atoms is cca. zero


What is the difference between ionic bond and covalent bond?

Ionic bond: involve an electrostatic attraction between atoms.Covalent bond: electrons are shared between atoms.


What is the difference between a glycosidic bond and a peptide bond?

Peptide bond is the bond formed between amino acids. Glycosidic bond is the bond formed between simple sugars Peptide bond is the bond formed between amino acids. Glycosidic bond is the bond formed between simple sugars


What type of electronegativity difference exists between atoms in a covalent bond?

If the electronegativity difference between two atoms is less than 1.7, then a covalent bond is formed between the two atoms.


What is the difference between Yankee Bond and Bulldog Bond?

Yankee is an American Bond, while Bulldog is a British Bond.


What type of bond has high electronegativity?

It depends on the difference in electronegativity between the two atoms. If the EN difference between two atoms is less than 0.5,the bond is nonpolar covalent. If the EN difference between the two atoms is between 0.5 and 1.6, the bond is polar covalent. If the EN difference between the atoms is greater than 2.0, the bond is ionic. If the EN difference is between 1.6 and 2.0, and if a metal is involved, then the bond is considered ionic. If only nonmetals are involved, the bond is considered polar covalent. Please refer to the related links.


What is the difference between the bond's principal and the bond's par value?

Shaken not stirred.


What large differences in electronegativity result in bonding between atoms?

If this difference is under 2 the bond is covalent; if the difference is over 2 the bond is ionic.


What is the difference between an ionic bond covalent bond and hydrogen bond?

ionic bond: between a metal and a nonmetal Covalent bond: between 2 non metals USUALLY and i don't know about hydrogen bonds...


Is there any difference between contract and a bond?

Yes, there is a difference between a contract and a bond. A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship, while a bond is a financial instrument that represents a loan made by an investor to a borrower, typically a corporation or government. Contracts involve the exchange of goods, services, or promises, while bonds involve the exchange of money with a promise to repay the principal amount plus interest at a later date.


What type of bond is between Metals with nonmetals of differing electronegativities?

If the difference in electronegativity between the metal and the non metal is above 1.7, then ionic bond is formed. If the difference in electronegativity between the metal and the non metal is below 1.7, then polar covalent bond is formed.