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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
Why do investors buy corporate bonds?
Most investors tends to buy corporate bonds cause its risky thus the rate of return are grater than those of government bonds most of the time, while bonds are much more safer than most stocks.
callable bonds
No, longer term bonds are more sensitive to interest rate changes.
Why are government bonds generally considered risk-free?
They are considered credit "risk free" because the government can always print money to repay bond holders. It doesn't mean thay will!
The reality is that there is a degree of credit risk, although generally small, but the government bonds do exhibit other risks (such as interest rate risk).
Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.
They allow people to understand the risk as the ratings agencies do the analysis so we don't have to.
Unfortunately they are paid by the organisations whose bonds they rate, creating a moral dilema.
What happens to the secondary market when the fed buys treasury bonds?
Prices tend to go up as demand has increased.
You would need to know a Yield To Maturity to answer this question.
a bond is a long term debt instrument or securried. bonds issue by the government do not have any risk of default the private sector company also issue bonds which are bonds debenture on india.
What are marketing securities?
Marketable securities are stocks, bonds, and derivatives which are sold and bought in a public market such as a stock exchange.
Discount-Mart issues $11 million in bonds on January 1, 2010. They have a seven-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.
Date Cash Paid Interest
Expense Decrease in
Carrying Value Carrying
Value
1/1/10 9,977,552
6/30/10 550,000 598,653 48,653 10,026,205
12/31/10 550,000 601,572 51,572 10,077,777
6/30/11 550,000 604,667 54,667 10,132,444
12/31/11 550,000
What is the stated annual rate of interest on the bonds?
a) 11%.
b) 10%.
c) 5%.
d) 12%.
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What is market value of a debenture today?
The market value of a debenture today is determined by its current trading price in the financial markets, which reflects factors such as prevailing interest rates, the creditworthiness of the issuer, and the time remaining until maturity. If market interest rates rise, the value of existing debentures typically falls, and vice versa. Additionally, the market value can be influenced by supply and demand dynamics among investors. To find the exact market value, one would typically look at recent trading data or financial market quotes.
How does Congress use savings bonds treasury bills and treasury notes?
Congress uses Savings Bonds and treasury bills and notes to help fund government operations. The money that people pay for the instruments is used immediately with a promise to pay that person the face value plus interest of the instrument (bond) when it matures.
Is it legal to cash in a savings bond from a deceased relative?
The savings bond is part of the estate. There could be legal consequences for cashing it.
How is a tax-exempt bond different from a bond sold by a company?
A tax exempt bond is issued by a municipality. The tax exempt status is not a property of the bond itself but is a result of tax legislation regarding municipal bond interest as being tax exempt. The interest rates on the bonds (the amount paid to the bond holder) are usually lower than on corporate bonds but because of the tax exempt status the lower rate may or may not result in a higher after tax yield depending on the rates of the two bonds and the tax bracket of the bond holder.
