Bonds and Treasuries

what are the advantage and limitations of fixed income securities

In finance, risk is generally defined as the possibility of loss or achieving a lower return than expected on an investment.

Keeping money in a bank is considered safer than stocks and bonds due to the fact that bank deposits are insured by the FDIC up to $250,000 and the nominal amount of savings in a bank will not decline. Investors in stocks and bonds are subject to a wide variety of macroeconomic risks which may impair the value of their investment.

To fully evaluate the difference in risk between bank deposits versus stocks and bonds, it is necessary to consider the time frame of the respective investments. If safety of principal is of paramount importance and the savings are likely to be needed in the near future to pay bills, a bank is the best and safest place to keep savings. Savings invested for the long term in stocks and bonds have historically far outperformed the return earned on bank savings. Investment expert Warren Buffett said recently that bank savers are suffering a "brutal" erosion of purchasing power on savings kept in the bank due to inflation and ultra low interest rates.

Savings bonds are an investment that will grant you interest based on how long you have the bond. The interest is comprised of either an annual or semiannual basis and will give you a larger sum over a longer period of time.

The local government of the US issues bonds to pay for permanent improvements.

Bondholders make money from investing in bonds in two different ways. First is a coupon payment through the life of the bond, or in another words it is a interest payment made payable to the bondholder.Secondly, the bond prices fluctuate based on the index of the interest rates.

Annual interest divided by the current market price

Notional amount is the amount which is calculated on the underlying asset for ex: s&p index offering contract @ 250 units trading with price of 1000, than its actual notional value is 250*1000 = 250,000. which is notional amount

Their is a very easy way and a more difficulty way.

1.). Income-investment.net provides all kinds of global government bonds including Australia. They have good quotes and rates, blog, telephone, and instant message help. I liked there service and good rates.

2.) Anyone can buy Australian Government bonds. You can buy direct from the RBA (Reserve Bank of Australia) by filling out a form. Tax laws are about to be changed to remove interest withholding tax on government bonds, which will make it easier to get paid interest on these bonds.

Check the related link for more information on how to buy Australian Government bonds.

I am mira maji vill po siddha dt purba medinipur west bengal & my son kalyan kumar maji with the sameaddres having some deep discount bond how we get money

Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.

Net Interest refers to the revenue that is got from the difference between cost of servicing liabilities and the revenue generated by assets that bear interest. This considered to be an excess revenue.

True

Intangible personal property includes stocks, bonds and mortgages.

See the related question link provided below.

Coupon Payment

The state issued bonds are sold to investors or stakeholders. The purpose of such bonds is to generate cash for projects being carried out by state, such as roads, buildings, or other projects for citizens.

Company's that assess the credit worthiness of both debt securities and their issuers in the united states the three primary bond ratings agency's are standards and poor's since the issuers pay the agencies for the service of providing ratings.

A bond selling for less than its face value is classified as being sold at a discount. A bond can sell at a discount if interest rates increase or if the repayment ability of the bond issuer becomes questionable due to a reduction in the credit rating of the issuer.

Which of the following is most correct?

a. The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond.
b. The yield on a 3 year corporate bond will always exceed the yield on a 2 year corporate bond.
c. The yield on a 3 year treasury bond will always exceed the year on a 2 year treasury bond.
d. All of the answers above are correct.
e. Statements a and c are correct.

invest in short-term bonds to reduce interest rate risk

Because the rate of return it is still a function of market influences. Whether a bond is premium or discount is merely a reference of the coupon rate vs the real market interest rate. If the issuer sets their coupon rate below the market rate, it is said to be discounted. Set the coupon rate above the market interest rate and it is said to be premium. An invester pays below face value for a discount bond and above for a premium. In the end, the invester receives a return on their investment that aligns with the real market interest rates. Premium vs Discount is merely a reference point from where you start - you still end up in the same place.

i just want to know who can give me the best answer for this question

There is a variety of bonds available. Some are safer than others. The same as stocks and shares. You can purchase some bonds that guarantee certain returns. I recommend you speak to a financial adviser.

Contribution to Effective Duration is a number that adds across all bonds or sectors to equal overall portfolio effective duration. It is a way of measuring allocation that takes into account both the market value weight and also the duration risk. If multiplied by a yield shift, it can estimate Contribution to Total Return resulting from that parallel yield shift. It is calculated by multiplying the bond's or sector's duration by its % market value weight.

This is a RIC-E trust that involves a variable annuity. Devised by financial adviser Ric Edelman and generally administered by him and his office.