Bonds and Treasuries

Investing in Bonds is even more volatile than investing in individual stocks. Unless you are a genuine expert, (I can tell from here that you are not), don't do it.

Cheers

There are four rating categories for short-term obligations that define an investment grade situation. These are designated Moody's Investment Grade as MIG 1 (best quality) through MIG 4 (adequate quality). Short-term obligations of speculative quality are designated SG. In the case of variable rate demand obligations (VRDOs), a two-component rating is assigned. The first element represents an evaluation of the degree of risk associated with scheduled principal and interest payments, and the other represents an evaluation of the degree of risk associated with the demand feature. The short-term rating assigned to the demand feature of VRDOs is designated as VMIG. When either the long- or short-term aspect of a VRDO is not rated, that piece is designated NR, e.g., Aaa/NR or NR/VMIG 1. Issues or the features associated with MIG or VMIG ratings are identified by date of issue, date of maturity or maturities or rating expiration date and description to distinguish each rating from other ratings. Each rating designation is unique with no implication as to any other similar issue of the same obligor. MIG ratings terminate at the retirement of the obligation while VMIG rating expiration will be a function of each issue's specific structural or credit features. MIG 1/VMIG 1 This designation denotes best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broad-based access to the market for refinancing. MIG 2/VMIG 2 This designation denotes high quality. Margins of protection are ample although not so large as in the preceding group.

MIG 3/VMIG 3 This designation denotes favorable quality. All security elements are accounted for but there is lacking the undeniable strength of the preceding grades. Liquidity and cash flow protection may be narrow and market access for refinancing is likely to be less well established.

MIG 4/VMIG 4 This designation denotes adequate quality. Protection commonly regarded as required of an investment security is present and although not distinctly or predominantly speculative, there is specific risk.

SG This designation denotes speculative quality. Debt instruments in this category lack margins of protection.

Yes--I own one--and it's worth about $200. You can find out exactly here: http://www.treasurydirect.gov/BC/SBCPrice

InterNotes are types of investments ("bonds") that have certain characteristics that make them particularly attractive for banks and financial advisors to sell to their retail and private banking customers. The term "InterNotes" specifically applies to the registered brand name that Incapital LLC applies to bonds issued by a wide range of corporations and banks who have agreed to issue these investments using its underwriting and distribution platform. Refer to www.incapital.com, www.internotes.com, www.incapitaleurope.com & www.eurointernotes.com for further information and documentation.

Bond valuation has one fundamental principle. This principle is that the bond has a value that is equal to the present value of the expected cash flow that will occur in the future.

Assuming that you were only concerned with hedging the interest rate risk (rather than FX or credit risk) on any Fixed income instrument, then you would use interest rate swaps to change your fixed rates to floating.

nmobodyknows

The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.

Call your local bank. If it is in your name or your are the beneficiary, they can or should be able to cash it for you.

Often because interest rates have gone down, and they can issue new bonds or borrow money cheaper than the interest rate that is on the bonds. The other likely situation is that they made enough money that they have the cash to pay off the bonds and don't need to borrow it any more.

The World Trade Organization is a group that is designed to make international trade organized and fair. The WTO tries to create trade deals between countries and to regulate trade.

High yield bond ( Junk bonds) funds own the debt of companies with less than stellar credit. The yield is higher to compensate the the increased risk that the fund and its investors are more likely to lose money as compared to a bond fund holding higher rated debt.

Yes.

Your bond will continue to earn interest until it is 30 yrs old. Here's how to figure it: Series EE savings bond bought betwn 5/1/1997 and 4/30/2005 will earn interest based on market yields for 5 yr treasury securities --- the rate will be 90% of the average yields on 5-yr treasury securities for the preceding 6 months. Series EE/E savings bonds issues may 1, 1997 - 5.68% interest

Nov 1, 1997 - 5.59% Those are good rates and you might want to not cash them in yet. Call the Treaasury Dept at 1-877-973-8983 (toll free) and request the latest redemption values table for EE & E bonds If you redeem the bonds bought in 1997 in September 2007 - then a $500 bond is worth from $373.40 to 384.80 depending on what month in 1997 it was purchased --- the interest earned is from $123.40 to 134.80. They originally cost $250 and will continue to gain value for the as long as 30 years from purchase date.

present value zero coupon=1000/(1.08)31

depends on the series but around 42 dollars

Mine was redeemed via U.S. Bank Corporate Trust, Tel. (800) 934-6802. I don't know if they hold all EasyGrowth Treasury Receipts or if mine alone wound up there. I really don't know how these things work, but they were the ones to contact in my case.

Reciprocity. The states cannot tax federal issues and the federal government cannot tax state issues.

The controversy concerning unsolicited bond ratings is that the rating agencies would rate a company without permission and then demand that the company pay them or else they would rate them poorly. This is totally unethical and some rating agencies have been subpoenaed for doing so. This is an issue because the rating system is supposed to be untainted so that the investor has the most knowledge about the company and bond he or she is about to invest in. Any meddling of the ratings can be favorable or unfavorable to one company or another which gives an unfair advantage or disadvantage. (posted by Douglas Campbell)

I don't know

8.5

US treasuries are issued by the federal government and consist of Treasury Bills, Treasury Notes, and Treasury Bonds. The proceeds from these securities are used to fund government programs, and the interest earned by the purchaser of the treasuries is exempt from state and local taxes. US treasuries are considered to be a very conservative type investment with low returns based on the relatively low amount of risk assumed.

Treasury bonds (or T-Bonds) mature in ten years or longer. They have coupon payment every six months like T-Notes, and are commonly issued with maturity dates of ten and thirty years. The secondary market is highly liquid, so the yield on the most recent T-Bond offering was commonly used as a proxy for long-term interest rates in general. This role has largely been taken over by the 10-year note, as the size and frequency of long-term bond issues declined significantly in the 1990s and early 2000s. The U.S. Federal government stopped issuing the well-known 30-year Treasury bonds (often called long-bonds) on October 31, 2001. As the U.S. government used its budget surpluses to pay down the Federal debt in the late 1990s, the 10-year Treasury note began to replace the 30-year Treasury bond as the general, most-followed metric of the U.S. bond market. However, due to demand from pension funds and large, long-term institutional investors, along with a need to diversify the Treasury's liabilities - and also because the flatter yield curve meant that the opportunity cost of selling long-dated debt had dropped - the 30-year Treasury bond was re-introduced in February 2006 and is now issued quarterly. This will bring the U.S. in line with Japan and European governments issuing longer-dated maturities amid growing global demand from pension funds. Some countries, including France and the United Kingdom, have begun offering a 50-year bond, known as a Methuselah.
an interest-bearing bond issued by the US Treasury.

Treasury Notes (T-Note) matures in two to ten years. They have a coupon payment every six months, and are commonly issued with maturities dates of 2, 3, 5 or 10 years, for denominations from $1,000 to $1,000,000

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