0
What else can I help you with?
Do bond ETFs pay dividends?
Yes, bond ETFs can pay dividends to investors. These dividends are typically generated from the interest payments on the underlying bonds held by the ETF.
What are the differences in fees between ETFs and mutual funds?
The main difference in fees between ETFs and mutual funds is that ETFs generally have lower expense ratios compared to mutual funds. This means that investors typically pay less in fees to invest in an ETF compared to a mutual fund. Additionally, ETFs may have lower transaction costs and tax implications, making them a more cost-effective investment option for some investors.
What is a bond sold above face value?
A bond sold above face value is known as a premium bond. This occurs when the bond's coupon rate, or interest rate, is higher than the prevailing market rates, making it more attractive to investors. As a result, buyers are willing to pay more than the bond's face value to receive the higher interest payments. The premium reflects the additional value investors place on the bond's higher coupon rate.
What is the difference in stocks and bonds investing from a personal vs a corporate point of view?
Bonds have less risk, but stocks potentially provide greater returns. Looking at this, I should add to it. There are two ways a bond is less risky than a stock. First is the nature of a bond. It's a loan, and there are two kinds, coupon and zero-coupon. When a company sells a "coupon" bond, they guarantee that on specific dates they will pay interest, and on a specific date in the future they will return the principal. The bond has a number of coupons attached to it, and each is dated. When the date on the coupon arrives, you turn it in and receive your interest payment. The main part of the bond is called the corpus, and it's also dated. (Having said that, there is a market for "stripped" bonds; someone will buy a bond, remove the coupons, and sell the coupons and the corpus separately to people who don't want to invest long-term.) A zero-coupon bond is sold at a discount from its face value, and you hold it till it matures then receive the face value at that time. The bottom line with bonds is, they are obligated to pay you exactly what they say they're going to pay you exactly when they say they will. The downside is, they won't pay you more than that and stocks potentially will pay you far more than that. Ask the investors who bought Apple in 1984 when it was $25 about that. (Also talk to the investors who bought it at $700...right now, it's around $550.) The other is if the company goes under. Should a corporation have to be liquidated, they are required to make all the bondholders whole before the stockholders receive anything.
What does it mean went a bond is issued at a premium?
When a bond is issued at a premium, it means that the bond's selling price is higher than its face value or par value. This typically occurs when the bond’s coupon rate is higher than the prevailing market interest rates, making it more attractive to investors. As a result, investors are willing to pay more for the bond to receive the higher interest payments. The premium is amortized over the life of the bond and reduces the effective yield for the investor.
Do bond ETFs pay dividends?
Yes, bond ETFs can pay dividends to investors. These dividends are typically generated from the interest payments on the underlying bonds held by the ETF.
What are the differences in fees between ETFs and mutual funds?
The main difference in fees between ETFs and mutual funds is that ETFs generally have lower expense ratios compared to mutual funds. This means that investors typically pay less in fees to invest in an ETF compared to a mutual fund. Additionally, ETFs may have lower transaction costs and tax implications, making them a more cost-effective investment option for some investors.
What is the benefit of purchasing no load index funds?
The benefits of purchasing no load index funds is to avoid incurring any transaction costs compare to those investors who are buying ETFs who have to pay the brokerage commission.
What is the difference in stocks and bonds investing from a personal vs a corporate point of view?
Bonds have less risk, but stocks potentially provide greater returns. Looking at this, I should add to it. There are two ways a bond is less risky than a stock. First is the nature of a bond. It's a loan, and there are two kinds, coupon and zero-coupon. When a company sells a "coupon" bond, they guarantee that on specific dates they will pay interest, and on a specific date in the future they will return the principal. The bond has a number of coupons attached to it, and each is dated. When the date on the coupon arrives, you turn it in and receive your interest payment. The main part of the bond is called the corpus, and it's also dated. (Having said that, there is a market for "stripped" bonds; someone will buy a bond, remove the coupons, and sell the coupons and the corpus separately to people who don't want to invest long-term.) A zero-coupon bond is sold at a discount from its face value, and you hold it till it matures then receive the face value at that time. The bottom line with bonds is, they are obligated to pay you exactly what they say they're going to pay you exactly when they say they will. The downside is, they won't pay you more than that and stocks potentially will pay you far more than that. Ask the investors who bought Apple in 1984 when it was $25 about that. (Also talk to the investors who bought it at $700...right now, it's around $550.) The other is if the company goes under. Should a corporation have to be liquidated, they are required to make all the bondholders whole before the stockholders receive anything.
What does it mean went a bond is issued at a premium?
When a bond is issued at a premium, it means that the bond's selling price is higher than its face value or par value. This typically occurs when the bond’s coupon rate is higher than the prevailing market interest rates, making it more attractive to investors. As a result, investors are willing to pay more for the bond to receive the higher interest payments. The premium is amortized over the life of the bond and reduces the effective yield for the investor.
Are there any high dividend ETF's on the market right now?
Yes there are still ETFs that pay good dividends. There is a list available of the highest paying ETFs at http://etfdb.com/compare/dividend-yield/
What is a Zero coupon bond?
A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond.
Does s and p 500 pay dividends?
The S&P is an index. It is made up of 500 of the largest US companies. As an index it does not pay a dividend although ETFs and mutual fund investments designed to track the S&P 500 do often pay a dividend. This is possible because many of the 500 companies in the index pay a dividend. The dividends can be pooled and the passed on to investors of the funds. The most common example is ticker symbol SPY.
When do you get your coupons?
When I want to get discount on product, I search for coupons because by using coupons I don't pay full price.
Do you have to pay a fee to use godaddy coupons?
You can use Godaddy coupons for free. People should never have to pay in order to obtain a coupon. That said, the coupons will only give you a discounted price.
What is the relationship between coupon rate and bond price?
The Bond price is the amount of the bond when it becomes mature. The coupon rate is the amount of interest payable on the bond.Bonds have three major componentsThe first is the face value (also called par value). This is the value of the bond as given on the certificate or instrument. This is the value the bond holder will receive at maturity unless the issuer defaults. If bonds are retired before maturity, bond holders may receive a slight premium over face value. Investors pay par when they buy the bond at its original face value. The price investors pay may be more or less than the face value.Bonds also have a coupon rate. This is the annual rate of interest payable on the bond. For the owner of a bond, the higher the coupon rate, the higher the interest payments the owner receives. The rate is set at the time the bond is issued and generally does not change. Most bonds make interest payments semiannually, although some bonds are offered with monthly and quarterly payments.Did you know?Until 1983, all bond owners received an actual paper bond certificate.This inspired bond terminology. The loan amount appeared prominently on the face of the bond. Bonds included coupons that the owner detached, onePrice and interest rate on a bond are inversely related, if the bond price is low, rate will be high, if the bond price is high, interest rate will be lower.
Why are bond ratings important?
Bond ratings are important because they provide investors with an assessment of the creditworthiness of a bond issuer, indicating the likelihood of timely interest payments and principal repayment. Higher ratings typically suggest lower risk, making the bonds more attractive to conservative investors. Additionally, bond ratings influence the interest rates that issuers must pay; lower-rated bonds usually require higher yields to compensate for increased risk. Overall, these ratings facilitate informed investment decisions and contribute to the efficiency of the bond market.
