What is the implication of a high face value and a lower quoted price of a bond?
Bond prices serve as a benchmark for many things, including interest rates, forecasts of future economic activity etc,
High value bonds are sometimes called premium bonds. Premium bonds are attractive for their high coupon rates that are greater than current market yields. In other words, the higher initial cost can be offset by the higher cash payments received throughout the life of the bond.
Here are the implications of Premium Bond (high face value):
However there is no advantage to buying a bond at a discount, or even a , versus one trading at a premium. Like anything in life, you get what you pay for
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Disclaimer: This information does not serve as investment advise and take due diligence when placing a trade.
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.
What is the advantage of issuing bonds rather than stock?
If you sell a bond, you are agreeing to buy it back later at a higher price. Thus you are really just giving yourself a loan.
On the other hand, if you sell the actual stock, you are losing some of the control of the company, as the new owner can vote those shares.
Municipal Bond
How do you get the beneficiary name changed on savings bonds if the owner has died?
If the owner of the savings bonds has died, then the bonds are inherited by the beneficiary, unless the beneficiary has also died in which case the bonds go to the estate of the beneficiary. If you don't want the bonds to be inhertied by the named beneficiary or the estate of the beneficiary, I would like to know what legal basis you have for taking control of those bonds. We already know that you are neither the owner (who has died) nor the beneficiary. So what is your claim based upon? I doubt that you have any legal basis to change the benefciary.
Why are us saving bonds considered a safe form of saving?
Savings bonds are backed by the U.S. government. Payment of the interest and principal is guaranteed.
Read more at http://www.kiplinger.com/article/investing/T052-C000-S001-what-you-need-to-know-about-u-s-savings-bonds.html#gfBd1CK2L52fTUhH.99
Are bid bonds callable demand?
similar to other forms of surety bonds, bid bonds are callable on demand.
What are the differences between stocks bonds and cds?
Cds, Stocks, and bonds are 3ways to get money. But you need to be able to know what they are and how to use them.
First off we have Cds which stand for certificate of deposit. Cds are like savings accounts because they are risk free and are insured by the bank. Cds have fixed terms and have fixed interest rates and if you get a Cd they are supposed to be held in till the maturity which can be awhile, it matters how long the term is. So if you get a Cds it will be good to get it while you're young or get it for your children while their young. The good thing about Cds are that they are insured by the bank and also Cds have a fixed rate so they don't get raised and after the maturity rate ends you get more money then you put in. The bad thing is that you have to wait a long time to wait for the maturity rate to end and if you need that money then you won't get all the money you could get.
Bonds are a debt security in which the issuer 0wes the holders a debt and is obliged to pay interest or pay at a latter date. Bonds are formal contracts to get borrowed money with interest at fixed intervals. So bonds are like loans but it gives the borrower with external funds or finance current expenditure. Bonds are different from cds because you are taking a risk when getting one. The co. that you are getting a bond from could be shut down and they don't have to give you're the money cause it is not insured. Also the rates are not fixed and can go up. The good thing about it is that bondholders have a creditor stake in the co your in.they are like cds cause they have a maturity . They are like stocks cause they both have securities.
Stock is the subscribed capital of a corporation or limited-liability company, divided into shares and is represented by transferable certificates there are more then one type of stock but the most common is common stock. Common stock makes your have a share of the co. you're buying from and you get money form the co. you get stock from, which is interest in the cos. earnings and assets. You also have voting rights that can vote in a new Coe. Stock is like a CD cause it takes awhile to get money out of it. They are like bonds because they are risky and if you don't know what you're doing you could lose a lot of money and also its not insured. The bad things about stock are that it is not insured. Also it takes a while to get real money and you really have to know what you're doing. Also it hard to get a share of a stock that is any good and it cost a lot for the good ones.
How do you find out if your deceased father had any stocks or bonds?
There are a few ways to find out of your deceased father had any stocks or bonds. The easiest way is to ask family members like your mom.
What are companies with outstanding bond issue in the market?
Companies with outstanding bond issue in the market are companies that have used tax payers' moneys in the form of bonds but have not paid back the bond. Bonds are usually used for projects that benefit society as a whole, such as new schools.
How do investors make money on zero-coupon bonds?
The bond sells at a discount from its face value--sometimes a BIG discount. At the date of maturity, the bond will give you the full face value.
Companies issued debentures in recent year?
1) Muthoot Finances announced the issue of Non-convertible Debentures for Rs 150 cr.
2) Reliance capital issued Rs 500 cr Non-convertible debentures.
3) Shriram Transport Finances announced the launch of its second secured redeemable non-convertible debentures issue to raise Rs 500 cr.
4) Tata Global Beverages said it raised Rs 325 cr in private placement of debentures.
Yield to maturity vs yield to call?
Yield to maturity assumes that the bond is held up to the maturity date. This is a disadvantage. If the bond is a yield to call , it can be called prior to the maturity date. Thus, the ivestor should sell the callable bond prior to maturity if he expects that he will earn higer return by doing so (in other words when yeild to call is higher than held to maturity).
What advantages do bonds offer to firms that issue them?
The major advantage offered by bonds to firms that issue them is access to low cost capital that if listed and rated is able to be traded.
What are Standard and Poor's and Moody's ratings based on?
They are based on current information furnished by the insurance company or obtained by S& P from sources it considers reliable.
If you put 200.00 in a us savings bond how much would you have in six months?
Still only about $200. EE bonds would earn only 4 or 5 cents in 6 months. Savings Bonds at one time were good long-term investments. Not so much today.
The bond rate from 2011 to 2013 continues to be very low: from 0.20 to 0.30 percent for EE bonds, and a variable I bond rate (inflation adjusted) of less than 2%.
with james
Sensible answer from Kittsville:
You get a dealer to do it for you, he will take a small cut for the service.
What is better a stock or a bond?
That depends on the goals of the purchaser. Bonds return a fixed rate of interest income. Stocks generally return a fluctuating rate of interest income, and thus have the capacity to return more money, both as dividends and increased (resale) value of the stock itself.
However, stocks also have the potential to decrease in value, which is not true of the bond market.
Finally, if the company folds or goes bankrupt, bond-holders will be the first people to be repaid the value of their bonds (since bonds are debts owed to the bond-holder), while stockholders will not be repaid (since stocks are shares of ownership, not debts).
If you want to risk your money for the sake of earning more, buy stocks. If you don't want to risk as much and are willing to settle for a lower rate of return, buy bonds -- even then, beware, because a company that goes bankrupt may not have enough money left over to pay even the bond-holders.
69.52
A parent company can purchase the subsidiaryâ??s outstanding bonds if they do not want the subsidiary to borrow money from them to retire the outstanding bonds. By purchasing the subsidiaryâ??s outstanding bonds, the parent company is ensuring that the effect on the consolidated financial statements is the same but without the extra steps.