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Interest is usually paid semiannually.

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14y ago

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Continue Learning about General History

What is a promise to repay money lent by a specific date with interest?

A bond. Or Money Bond


Can you provide an explanation of a bond quote and how it is used in the financial markets?

A bond quote is a price at which a bond is bought or sold in the financial markets. It includes information such as the bond's face value, interest rate, and maturity date. Bond quotes help investors assess the value of a bond and make informed decisions about buying or selling it.


What is the bond for aggravated assault in Kansas?

Aggravated Assault is a felony, so if the defendant is granted bond, it will be at least $5,000, meaning $500 must be paid to the court clerk for supervised-release.


One economic strategy the government encourages to stimulate savings is?

Raise the interest rate paid on savings and investments.(.Y.)


What are some reasons why people should consider I Bonds?

I Bonds, or Individual savings bonds, also called Series I savings bonds, are savings bonds that are issued through the United States Department of Treasury. They are guaranteed to never lose value. I bonds are started with a 1 year minimum hold time, and the bond can not be released. They also have a penalty of three months of interest rate if they are redeemed before 5 years. After 5 years the penalty for redemption will end. In times of inflation the I bond will accrue interest. This interest can be earned for up to 30 years. When the bond is redeemed, let's say in 30 years, one will get the original amount invested and all of the interest accrued over the 30 years.

Related Questions

What is a bond and how interest are paid?

Bond could for instance be if you lend money to the government. They would pay you an interest like if you would pay an interest in the bank.


How does the relationship between bond price and interest rate impact the overall performance of a bond investment?

The relationship between bond price and interest rate is inverse - when interest rates rise, bond prices fall, and vice versa. This impacts the overall performance of a bond investment because if you sell a bond before it matures, you may receive less than what you paid for it if interest rates have increased. Conversely, if interest rates have decreased, you may be able to sell the bond for more than what you paid.


What is a principal of a bond?

The principal of a bond is the amount of a bond that interest rates are paid on by the person issuing it. I like to think of it as the initial amount the bond is worth. Example: Hudson Corporation issued a $10,000 bond at 14% interest. The $10,000 is the principal of the bond.


How can you avoid accrued interest on a corporate bond?

Buy the bond just after the coupon has been paid (or goes "ex coupon").


What statement about municipal bonds is not true?

For each bond, there is a variable amount of interest that is paid to the purchaser.


What is the interest rate the bond issuer pays to the bondholder called?

The interest rate paid on a bond is known as the coupon rate. A $1,000 fixed rate bond with a 5% coupon rate purchased at par would yield $50 annually in interest payments.


What is the connection between a bond principal and interest?

The bond principal is the initial amount borrowed by the issuer, while the interest is the payment made by the issuer to the bondholder for the use of the principal. The interest is usually a fixed percentage of the principal amount and is paid at regular intervals until the bond matures.


Who determines the rate of interest paid on a bond?

Bonds have a predetermined rate of interest called the stated or contract rate, which is established by the board of directors.


what interest rate is paid on EE Bonds?

From May 1, 2009 through October 31, 2009, the EE Bond interest rate is 0.70%.


Define yield in mutual funds?

Yield is the interest earned on a bond, or the dividend paid on a stock or mutual fund.


What does FRB mean on a bank statement?

Fixed rate bond: ie the interest being paid into the nominated account


What is the difference between the coupon rate and the interest rate?

Coupon rate is something that is paid semiannually. The interest rate is something that starts as soon as a bond is issued.