Could somebody who knows a lot about the stocks and bonds etc. answer these question
1. what is a variable-rate bond and a treasury bond future contract
2 what is example of a money market instrument use in the market place.
oh one more thing
If I buy a bond with the face value of 1000.00 and the coupon rate is of 6%. and I sold it one year later for 930.00 what would be my yield rate at maturity.
thanks for all your help
I bond rates are calculated based on a fixed rate set by the U.S. Treasury, as well as a variable rate that adjusts every six months based on inflation. The two rates are combined to determine the overall interest rate for the i 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."
The lender can change the rate on a variable rate loan. A fixed rate stays the same for the life of the loan.
To find the coupon rate of a bond, divide the annual interest payment by the bond's face value and then multiply by 100 to get the percentage rate.
When the market rate of interest is equal to the stated rate of interest on a bond, the bond will trade at its par value, or face value. This means that investors are willing to pay the full amount for the bond because the yield they would receive from the bond matches the current market rate. Consequently, there is no premium or discount applied to the bond's price.
No, an instrument is something like a bond or cd.
I bond rates are calculated based on a fixed rate set by the U.S. Treasury, as well as a variable rate that adjusts every six months based on inflation. The two rates are combined to determine the overall interest rate for the i bond.
It is also called variable rate or adjustable rate. It does not have a fixed interest rate over the life of any of these debt instrument: loan, bond, mortgage, or credit.
The Variable Rate is the rate at which a number changes
The interest on a bond, often referred to as the coupon payment, is calculated by multiplying the bond's face value (or par value) by the coupon rate. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, the annual interest payment would be $50. This payment is typically made semiannually, annually, or at other specified intervals, depending on the bond's terms. The interest calculation does not change over the life of the bond, unless it is a variable rate bond.
Market rate of bond is that rate at which that bond will be sale in market and it is different from face value of bond as well as book value of 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."
Variable rate mortgages are mortgages that are not fixed. A person would have to decide which mortgage they would like to try for, either a fixed mortgage rate or a variable rate mortgage.
If you want a variable interest rate to fixed, refinancing your home would be the way you can accomplish this. Variable rate also known as an adjustable rate mortgage should be refinanced before your interest rate adjust.
A heart rate is typically considered a dependent variable in experiments where it is measured in response to changes in another variable, such as exercise intensity or stress levels. In such cases, the heart rate changes based on the influence of the independent variable. However, if heart rate is the variable being manipulated or controlled, it would be the independent variable in that context.
A bond is a debt investment where an investor loans money to an entity, typically a corporation or government, for a defined period at a fixed or variable interest rate. The issuer of the bond agrees to make periodic interest payments to the bondholder and repay the principal amount at the bond's maturity.
When market interest rates exceed a bond's coupon rate, the bond will: