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Bonds and Treasuries

A note whereby the investor loans a corporation or government money at a set interest rate over a predetermined time period.

1,619 Questions

How do you redeem war bond?

To redeem a war bond, you typically need to present the bond at a financial institution, such as a bank or credit union, that handles bond transactions. Depending on the type of bond, you may receive the face value or a cash payment based on accrued interest. It's important to check the bond's redemption terms, as older bonds may have specific procedures or require additional documentation. For guidance, you can also visit the U.S. Department of the Treasury's website or contact their offices directly.

What companies have to issue bonds that are collateralized?

Companies with low credit standing often issue secured bonds, for which specified assets have been pledged as collateral.

How are corporate bonds sold to the public?

Corporations generally do not sell directly to the public; rather, they sell their entire issues to an underwriter, often an investment bank, which acts as "middleman" for the corporation and the bondholders.

Who decides to issue bonds for a corporation?

corporation, the board of directors is responsible for making the decisions related to a bond issue including determining how much money is to be raised, what type of bond will be sold, what the maturity date will be, and what the interest rate will be.

Who sells savings bonds?

Bonds may be purchased at banks, online at TreasuryDirect, or where one works, if one's employer has such a deduction plan.

Why do companies issue bonds instead of new stock?

frequently motivated to choose bonds over expansion of stock owners for two basic reasons: The cost of interest is deductible as a yearly expense, and there is no dilution of ownership through the extension of the company's liabilities.

Do you need a will to cash in your fathers savings bond he is deceased?

The bond likely has a Social Security number on it, so, it will be impossible for you to cash it, without makeing it part of the estate and having the executator do it. Even if they are broke, that doesnt mean you cannot cash him/her out. You can electe an executor, and they can pay bills (or debts) from the money in the estate. I've never really seen executors get sued by anyone other then relatives, who feel slighted.

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If they did not have a will, then they have the default will. (There is a default will in every state).

What is prospective market?

Is the same as how strong the demand for a product or a service is.

Where are stocks and bonds bought and sold?

2 ways.

An Exchange (e.g. NYSE) which is a centralised market or

Over-The-Counter (OTC) which is a decentralised market. Bonds usually trade OTC.

What alternatives to corporate stocks and bonds do securities firms offer?

These vehicles included municipal (state and local) bonds, junk bonds, options, mutual funds, asset and mortgagebacked securities, futures, and real estate investment trusts.

What are factors of commercial paper?

Factors provide financing on accounts receivable by discounting accounts receivable on a non-recourse basis. Upon buying the accounts, the factor assumes the position of the seller--including the risk of default and credit losses

How long does it take for a savings bond to reach face value?

About 17 to 20 years, depending on what series it is. The years I've listed above are for series EE.

What are the basic components of bonds?

Coupon - periodical cash payment

Corpus or Face Value - amount paid at maturity

How is a fico strip bond redeemed?

where can I redeem a fico strip bond in minneapolis, minnesota

What are the advantages of callable bonds?

flexible

potentially cheaper

lower interest rates

Are bonds low risk?

Bonds are one of the most preferred investment instruments for the risk averse investor who wants a decent return on investment (ROI) and capital preservation at the same time. Bonds are debt obligations which pay out a fixed interest on the invested sum and pay back the whole invested principal at maturity. Unfortunately, Bonds are not so straight forward as they might sound. There are many risks involved in investing in Bonds. These risks can cause losses to the investors bond portfolio and defeat the whole purpose of capital preservation.

Some of the risks involved in investing in Bonds are:

1. Interest Rate Risk

2. Re-investment Risk

3. Call Risk

4. Default Risk &

5. Inflation Risk

What does OR on a us savings bond mean?

Ok when you buy a saving bond you are giving money to the US and over time you are expected to get more money out of the savings bond than you bought it for. Like you bought a $10 saving bond 20 years ago. When you go to cash it in you expect to get $35. But im not sure about the rates.