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Are I Bonds A Good Investment

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Helen Said:

are bonds a good investment right now? what should i know?

We Answered:

If you want safety of your principal. I bonds are paying 5.64% through April and factors in inflation.

Rebecca Said:

What is a good, medium-risk type stock investment? How do I determine what is a good investment or not?

We Answered:

Even the best investors make mistakes occassionally. As advised by several other responders, the way to prevent specific risk is through diversification. With only 5k, diversification can best be achieved by purchasing a good mutual fund or an index fund.

I do have a certain problem with certain index funds like the total market fund mentioned by one responder. That particular fund and many others are capitalization weighted. That means that your investment is not as diversified as it should be. As much as 30% of your investment is concentrated in 20 stocks. And it is all concentrated in U S stocks. Of course that is preferable to stuffing it into one junk bond.

Recognizing a good investment is more a function of hind sight than foresight. Some that I thought were good investments at the time turned out to be terrible investments. Some worse than terrible. In general though during periods of low interest rates such as today, bonds are terrible investments. Inflation and taxes consume all the interest and much of the principal besides.

Equities in general make better investments than do bonds. If you can purchase stock in growing companies and leave it sit there for 5 to 10 years, you should be able to generate better than excellent returns provided you did not pay too much for the priviledge to begin with. Some that over the years have proven so are AIG, BAC, GE, NSC, BLL, GGG, CHL, XOM, LOW, JNJ, NVS just to name a few that come to mind. But with only 5k it would be a mistake to invest in any of those. Too much specific risk. Just because they have been good investments in the past does not necessarily mean that they will be good in the future although the odds are with them. It is better with a small amount of money to invest in a mutual fund or index fund.

Dean Said:

Describe why or why not bonds are a good investment?

We Answered:

Bonds that keep up with inflation (I-bonds) are good to buy for safety of your principal.

Janet Said:

Do you think savings bonds are a good investment?

We Answered:

They are not a particularly good value. In fact they are not a good value at all. You have been mis-informed about how long it takes an EE bond to double in value--to mature. It currently takes 20 years. That is right 20 years. The 5 year duration is how long one must hold the bond to not forfeit any interest when it is cashed. The current rate is 1.3% but it is due to drop again on May 1. It was 3% just a year ago. Put the money in a CD with a 1 year duration. That way when inflation gets going really strong you can roll it over and get a better interest rate. The only good thing about EE bonds is you do not have to pay tax on the interest until it is paid. But by then I imagine that the tax rate might be about 50% because the country is completely bankrupt.

Chester Said:

Are I bonds a good investment?

We Answered:

The answer to your question depends on a couple of factors, such as your age now and how much risk your willing to accept. In turn one would need to know where you want to be "financially" in the future.

Aside from the above, bonds are generally a safe and secure investment if you have a "very" low tolerance for risk. To compensate for the low risk bonds, bonds (other than Junk Bonds), usually offer a lower rate of interest than more aggressive, and riskier investments such as stocks.

Brett Said:

Are bonds a good investment right now? ?

We Answered:

With the economy the way that it is bonds are a good safe investment. Depending on the type of government bond that you buy the maturity rate differs. I bonds are purchased at face value and have a penalty if cashed in before 5 years. EE bonds are sold at half face value and take 18 years to mature. Bonds also continue to gain value for up to 30 years.

    Bearer Bonds

    Alicia Said:How and were can you buy bearer bonds?We Answered:You'd have to be outside the US: A bearer bond is a bond with no owner information upon it; presumably the bearer is the owner. As you might guess, they're almost as liquid and transferable as cash. Bearer bonds were made illegal in the U.S. in 1982, so they are not especially common any more. Bearer bonds included coupons which were used by the bondholder to receive the interest due on the bond; this is why you will frequently read about the "coupon" of a bond (meaning the interest rate...

    Bonds And Interest Rate

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    Bonds And Interest Rates

    Lisa Said:Whats the relationship between interest rates and bonds?We Answered:That would be C. Bonds that were issued before rates fell are worth more now for obvious reasons, they pay more interest.Fernando Said:Which of the following bonds will have the greatest percentage increase in value if all interest rates decreas?We Answered:The 20-year, zero coupon bond because it has a duration of 20 years. The price change of a bond is generally proportional to: - duration x change in interest rates Note: 20-year, 10% or 5% coupon bonds would have a duration less than 20 years, that is why the 20-year, zero coupon...

    Bonds Australia

    Gregory Said:Is it possible to use futures contracts to hedge exposure to foreign bonds?We Answered:Sure...you can short (sell) the foreign currency of the country you are investing in. That way if the currency goes down you lose money on your bonds (when you buy back US dollars) but you would make money on your futures contract.Lester Said:Aussies, is it a good time to do a working holiday in Australia?We Answered:I'm currently on my second working holiday visa in Australia through BUNAC/IEP which I think you are referring to. I have found jobs pretty easy to get in Australia...

    Bonds Calculate

    Harold Said:Can i calculate how much my series EE bonds are worth online?We Answered:http://www.treasurydirect.gov/BC/SBCPric… Use the calculator to determine the value of your savings bondsWade Said:Canada savings bonds how do you calculate what it is worth?We Answered:They usually send you a note every year (when they are still in effect) , plus there is usually that 1-800 number listed on the bond itself so you can call just about any time and ask You could also ask at your bank. I don't think they accrue interest after their maturing date though. I'd check on that pronto. And to answer more directly,...

    Bonds Calculator

    Joy Said:how do i find out the status of my saving bonds from the military?We Answered:You can enter the type, and denomination of your bonds into the savings bond calculator at www.savingsbonds.govFlorence Said:Can a financial calculator compute for the valuation of bonds or stocks?We Answered:No it can not in the real sense of value. Value is always what someone is willing to pay for your asset. Always! A calculator can only compute future payment of bonds and price ratios of equities. It takes no risk into account. Nor does it look at market conditions.Maxine Said:How do...

    Bonds Clothing

    Jason Said:What is your favourite brand of kid's clothing?We Answered:definately bonds too, especially the stripe stuff, i had all colours in all styles for my two youngest kids now that they dont make the stripes past size 2 ive had to move on,,lol [daughters now 2 and im buying size 3, ive discovered the american brand GYMBOREE, omg, ive spend 100's online cos u cant buy them here! gymboree is like pumpkin patch in america just about my daughters whole wardrobe is gymboree now, i wqish i fit in her cute clothes,,lol xxxxxxxxxxxxxxxx havent seen u on here in ages!!!!!!!!!!!!!Claude Said:How many and what...

    Bonds Definition

    Rachel Said:What is the definition of "chemical bonding"?We Answered:A chemical bond is the physical phenomena responsible for the attractive interactions between atoms that confers stability to di- and polyatomic chemical compounds. The explanation of the attractive forces is a complex area that is described by the laws of quantum electrodynamics, but usually chemists rely on quantum theory or qualitative descriptions that are less rigorous but more easily explained. In general, strong chemical bonding is associated with the sharing or transfer of electrons between the participating atoms. Molecules, crystals, and diatomic gases - indeed most of the physical environment around us...

    Bonds Duration

    Lauren Said:What is "Duration", how is it used,and whats its significance in finance ?We Answered:In any analysis of fixed income (or liabilities), it is important to measure the “duration” of the income (or liability) stream. Duration is the cash-flow adjusted effective term to maturity for a series of given cash flows. Thus, duration is also sometimes referred to as “effective maturity.” It is also important to know that the duration of a portfolio of assets (or liabilities) is equal to the weighted average duration of the underlying assets (or liabilities). In addition, the higher the duration...

    Bonds Finance

    Tanya Said:What is the basic idea behind bonds in finance?We Answered:The basic idea is that a company that doesn't have enough cash to do what it wants to do issues bonds to generate cash. The people who buy bonds receive a percentage return on the amount of cash they have provided and after a set period, the person who bought the bond gets their money back. Wikipedia has a decent explanation.Wallace Said:How long will China continue to buy US treasury bonds to finance Obama's Santa Clause like giveaways?We Answered:China is worried about America’s decision to resort to “credit easing”—a modern...

    Bonds Funds

    Toni Said:As economy appears weakening, what % should I apportion my invesment money - shares, bonds, money funds, etc.?We Answered:It depends on how much risk you can handle. If you can't afford to lose too much of that money, than you probably don't want more than 50% of your portfolio in stocks and the rest in bonds or money market. But if you're in it for the long term (10+ years), then you should be mostly in stocks. Yea, they may fall a little farther, but even if we do enter a recession, it's likely not...

    Bonds Information

    Alvin Said:a question about general information on my bonds?We Answered:If you are talking about US Savings Bonds, you can check on their values by going to US Bonds.gov and going to the bottom right side, under highlights, and click on savings bonds calculator. You will need to have the bonds to do this. Usually bonds are given as a gift, and take 18-30 years to mature. If she is holding on to them for you, then she can do this herself, or give you the information on the bonds so you can look them up.Marshall Said:Information on Prize Bonds in...

    Bonds Investments

    Virgil Said:Which investments will get you richer Mutual Funds, Bonds, or investments in Real Estate?We Answered:Mutual funds because they have a historical rate of return of 10-14% in the past 25 years. Real estate have a historical rate of return between 6-8%. Bonds are the safest investments of all three, so they have a historical rate of return between 3-6%.Tracy Said:How can I reduce my tax payable income to save money in USA? Specific investments?We Answered:YOU SHOULD GET PAID NOT TAXED! The Alaska state constitution claims common heritage rights of ownership of oil and other minerals for the people of the state as...

    Bonds Market Rate

    Kathryn Said:The journal entry a company records for the issuance of bonds when the contract rate and the market rate are?We Answered:Since contract rate and market rate are the same, the answer is... d) debit Cash, credit Bonds PayableTheodore Said:Question about Bonds and Market Rate?We Answered:B. Lower than the market rate. Because the bonds printed a lower coupon rate than the market is willing to accept right now, the market has instead decided to buy the bonds at only 98 instead of 100. That way, the bond-buyers will get a higher yield out of the cheaper bond that...

    Bonds Market Value

    Sidney Said:Bonds and stocks are very similar securities in many respects. For example, market value of both are determine?We Answered:Actually, stocks and bonds are paired a lot in discussion however they have little in common. stocks are equities bonds are debt Commonality is that they are sold in an open market but SEPARATE and completely independent markets. Both are not accordingly priced based on future cash flows. There are many other factors that determine prices. bonds are more impacted by interest rates. stocks are more impacted by earnings (fundamentals), and technical (chart) factors. I don't know what you are really asking in RE: What advice...

    Bonds Prices

    Maria Said:How does demand for bonds shift when bond prices are expected to increase?We Answered:People will all sell them at once and the price will plummet.Raymond Said:Why perpetual bonds prices comes down since bigining of 2008?We Answered:Not sure where you're getting your facts... When interest rates come down existing bond PRICES go up thereby making any furure yields less.Marian Said:Where's a good place to find prices on motor vehicle bonds?We Answered:my advice is to just call some used car dealerships who are not in your IMMEDIATE area, and would not consider you competition, and ask who they get their bonds through.....

    Bonds Purchasing

    Karen Said:How will buying bonds help anyone?We Answered:i have a bba in economics... purchasing bonds increases the money supply in a round about way... normally bonds are held for a certain amount of time, say 10, 20, 30 or even 50 years and gain value over that time. when they reach their call date they are bought back by the issuing entity and the investor realizes their return. what the fed is trying to do it appears if what you say is true is to buy back bonds prematurely to put money in the hands of these bond holders...

    Bonds Selling

    Shirley Said:Selling and Buying Bonds with Interest rates?We Answered:You would sell your bonds if their contractual (bond) interest rate is higher than the market because you would get a surplus/gain. If you held none, you would buy a lower than market interest rate because you would get a discount In the end, it all evens out to the bond's principle and contractual interest over time due to amortization. Gains/losses are negligible.Dean Said:What does China Selling US Treasury Bonds mean? And moreover, whats the ******* big deal?We Answered:A bond is a piece of paper that is a loan. So if Bob or...

    Bonds Short Term

    Linda Said:Is it too late to buy short term bonds?We Answered:short term bonds have a negative return right now when adjusted for inflation. i would look for solid stocks that have a good dividend. stay away from speculative stocks like start ups and tech stocks.Shawn Said:Why the yield on the long term bond is less than the yield on short term bond?We Answered:The yield on the longer term bond usually is higher than short term bonds because of the risk one takes with long term is greater than risk with short term. So for taking higher risk long...

    Bonds Stock Market

    Ron Said:Why do you think the stock market lost a trillion this week and would it be wise to move stocks into bonds?We Answered:If you are in US Govt Certified bonds, then yes that is a safe investment. However if you are owning corporate bonds, then your money is at risk and I would consider other options. Personally my favorite investment over the next couple of years are high growth dividend stocks - stocks that grow during a recession AND pay a high dividend. Here is a list of my top 10 favorite high dividend paying stocks. http://stocksbuyorsell.com/stocks-buy-se…Arnold Said:What is the relationship...

    Bonds Trading

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    Buy Corporate Bonds

    Kent Said:Good Corporate bonds to buy?We Answered:For an individual investor without the resourses to research and negotiate the purchase of individual bonds, your best option is to purchase a bond mutual fund. The mutual funds have the resources and the ability to negotiate for favorable prices on bonds. They also provide diversity of holdings. There are litterly hundreds to choose from including those that hold investment grade corporate bonds to those that hold high yielding junk bonds. All the major mutual fund companies offer a wide selection, Fidelity, T Rowe Price, and Vanguard are three...

    Buy I Bonds

    Ramon Said:How to buy bonds trough online brokers?We Answered:I can only relate my experience with Fidelity and TD Ameritrade. They both offer bonds. They have inventories that you can browse on line to find ones that might interest you. All bonds carry ratings from AAA to D. Investment grade bonds are rated BBB or better. The brokers also have fixed income specialists who can assit you. I do have a suggestion for you to consider. There are mutual funds that specialize in bonds, both open end and closed end. They have both advantages...

    Callable Bonds

    Salvador Said:What affect does market volatility have on the probability of a callable agency bond getting called?We Answered:Increases in volatility add value to both puts and calls. This is not exactly the same as increasing the probability of being called. For a callable bond where the option is out of the money, increasing volatility will increase the probability of it being called. For a callable bond where the option is at the money, increasing the volatility does not change the probability of being called -- however, it does increase the expected benefit given that it gets called. That...

    Corporate Bonds Prices

    Judith Said:Why do corporate bonds prices change even when Fed interest rates remain unchanged?We Answered:Supply and demand is right, but there are many reasons that affect both supply and demand. If information comes out that changes the perceived risk for a corporate bond then the price (and yield) will change. If you heard that a company's best selling product now caused cancer the prospect for that company just changed radically and their ability to repay their loan probably changed. This would be reflected in the price of the bond and then the yield of that bond. If a...

    Corporate High Yield Bonds

    Lloyd Said:Why are high yield corporate stocks taxable?We Answered:If you mean high yield corporate bonds, because the tax code says they're taxable. As an incentive to get people to invest in their communities (and reduce gov't borrowing costs), the tax code makes interest on many types of government bonds (such as State, County or Municipal bonds) free from tax. Gains on corporate stocks aren't taxable until you sell them. Again, that's because the tax code requires it.Jessie Said:Could you recommend me a good high yield corporate bond ETF?We Answered:If you buy an ETF that has a good yield right...

    Corporate Investment Bonds

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    Duration Bonds

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    Duration Of Bonds

    Carl Said:Which of the following two bonds is more price sensitive to changes in interest rates?We Answered:A, Duration is the time to pay back your investment half way. The longer the duration the more time you have your investment exposed to interest rate risk.Allan Said:Statistics- How do I figure out which of the two bonds is better?We Answered:Assuming a bond duration of 1 year, the expected return for bond A is 1000 * 1.06 * 0.99 = 1049.40, and for bond B is 1000 * 1.08 * 0.95 = 1026. Bond A is obviously more profitable, but she could...

    General Obligation Bonds

    Mathew Said:What is a disadvantage towards Corporate Bonds?We Answered:Bonds are debt instruments and the seller has an obligation to repay the bondholder. The interest is generally fixed as is the life of the bond. Stocks, especially common, are purely speculative investments by the buyer (loans if you will) that the company is not obligated to repay should they enter chapter eleven. Bond holders are much higher up the list of payees should the company go under. Common stock holders are the last to be paid. There is no legal obligation that binds the issuer to...

    High Yield Corporate Bonds

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    How To Trade Bonds

    Jesse Said:How do I go about buying BONDS?We Answered:Bonds, like stocks are bought through broker/dealers If you know about bonds, you failed to state what type of bonds you wanted to buy Bonds trade in units of $1,000, so you're going have a hard time buying any bond of real value. Also, you will have to go through a broker/dealer and many want a minimum of $1000 to open an account, so be prepared to spend 1000 You may be able to find some corporate bonds over-the-counter, but the interest rate will be very low, especially in the demonination you want...

    Indexed Bonds

    Ella Said:What is the process of putting your money in bonds?We Answered:Bonds can be many things. Even Cd's - they fall into the bond category at my broker. = Very safe investments I have an inflation indexed cd, which pays almost nothing right now. But if rates go up, my cd rate will go up. Other types of bonds Treasury notes - the government borrowing money Municipal bonds - you can get a tax break if local bonds Even mortgage backed securities can be considered bonds. /Natalie Said:Would it now be a good time to start buying U.S. Government inflation indexed bonds?We Answered:No TIPS (Treasury Inflation Protected Securities) have...

    Index Bonds

    Roy Said:What is the best way to invest in bonds in a taxable account?We Answered:Tax-free municipal bonds. There are some Vanguard funds that have these.Cory Said:Does anyone know of a high yield bond index fund?We Answered:You really don't want an "Index Fund" for high-yield bonds - why would you want to track the poorest quality junk bonds? Split yourself among the best performers if you want greater exposure. JHancock High-Yield A JHHBX 20.65% 12 month return Fidelity Advisor High Income Advantage I FAHCX 18.38% Loomis Sayles Instl High Income LSHIX 16.65% Pioneer High Yield Y TYHYX 16.53% Expense ratios range from 0.7 -...

    Index Linked Bonds

    Jeffrey Said:Index-linked savings certificates for 3 years?We Answered:If you don't mind the risk, a high yield bond fund might do better. Index-linked savings certificates seem to produce about 3-4% per annum, but a high yield bond fund produces about 6-8% per annum. But as you can see, you're just trading off risk for return, which is a fundamental law of finance. I looked up information about the Index-linked savings certificates and they look like a good safe short term investment to me.Jeanette Said:what are index-linked gilts, fixed interest securities, bank deposits equities and real estate investments?We Answered:I will do...

    Inflation Bonds

    Ivan Said:When a foreign country buys bonds does it decrease inflation?We Answered:When a foreign country buys bonds it is giving a loan to the home country. A loan means there is an increase in liquidity in the home country. This has an expansionary effect on the home country's money supply which, other things being equal, tends to have an inflationary effect.Jean Said:What should happen to the market for bonds is inflation is expected to be lower in the future?We Answered:If inflation is lower, the interest rate on bonds will come dow as well, so the prices will rises.George Said:Smarter to...

    Inflation Indexed Bonds

    Tracy Said:Inflation Indexed Bonds (TIPS)--Good time to invest in them?We Answered:In the long run, they will probably do well. Right now we are in a period of deflation which will probably not last too long. I heard that TIPs were selling at a discount to their value even after adjusting for deflation....

    Interest Rates I Bonds

    Stella Said:Where can I learn about the relationship between goverment bonds and interest rates? I do not understand it?We Answered:This is a complex area, but the simple explanation is that if interest rates go up, then bonds you hold at the old interest rate lose value. If you have a bond that pays 3%, and new bonds pay 4%, people will want to buy the 4% bond. The only way you can get them to buy your 3% bond is to lower the price of the bond by about 1%, which has the effect of making your bond pay 4%...

    Investment Bonds Uk

    Vivian Said:Premium bonds uk?We Answered:According to this site http://www.nsandi.com/products/pb/rates.… the current interest rate is 3%. This is the average gain per year, i.e. when you hold 100 pound sterling in bonds you will gain, on average 3 pound per year. If you compare this to the going interest rates in Britain than this is a bad investment. However, the gains are tax-free which you have to take into account yourself. Also, Premium bonds are an investment which offers the fun and excitement of a chance of a big win. So just for the fun of, why not.Laurie Said:Is it safe to leave...

    Investment Corporate Bonds

    Kathryn Said:Are my Vanguard High Yield bonds still a good investment?We Answered:Yes the Vanguard High-Yield Corporate VWEHX is still a good investment. I invest in it. Even though the NAV dropped 20 percent last year its yielding almost 9.9 percent in dividends and its done better than the index it tracks. So reinvest your dividends. Ignore the person who talks about how bonds are valued. Thats for individual bonds. It doesnt apply for funds.Ben Said:Can the interest on corporate bonds change or be canceled once you buy them?We Answered:The yield depends on the type...

    Investment Grade Bonds

    Rosemary Said:Why do noninvestment-grade bonds have much higher direct costs than investment-grade issues?We Answered:Costs? They normally have much higher interest rates, which is a cost to the company issuing the bonds. Is that what you mean? That is due to the much higher risk that the bonds will default.Barbara Said:Is it a good investment to buy bonds during a recession and why?We Answered:Yes, those two reasons are generally cited as reasons to go w/ bonds instead of equities during a recession, but whether those reasons are valid depend on what bonds you buy. There are 0...

    Investment Grade Corporate Bonds

    Henry Said:Corporate bonds yielding 6 to 8%?We Answered:Investment grade bonds are yielding around 4.5 to 4.7% for 5 to 10 year maturities. Junk is yielding about 8%. For current yield and safety, you can not beat t-bills at the moment. Current yield 5% and untaxed by state and local governments. There are closed end debt funds that currently yield that return but their expense ratios are too high for them to be recommended investment vehicles. And all of the high yielding closed end funds are selling at healthy premiums to net assets.Mabel Said:What is Corporate Bonds?We Answered:Bonds...

    Investment In Bonds

    Florence Said:What is the best investment strategy when investing in stocks and bonds?We Answered:You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an...

    I Bonds Calculator

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    Municiple Bonds

    Shirley Said:What kind of Bonds are best to invest in?We Answered:It depends on what you want. Tax free income get muni bonds because you do not pay the IRS on the coupon payments. Security, muni (municiple ie state, county and city) and US government bonds are very secure. Then there are "High yield" they are bought at big discount and pay a good rate but are high risk. And of course standard corporate. Average risk, average return. For bonds, you need an advisor they are more difficult that stocks.Gertrude Said:Where is the best place...

    Offshore Investment Bonds

    Walter Said:How much taxes do I need to pay?We Answered:The tax due will depend upon the type of income the payment represents. Dividends and interest are taxed as ordinary income. Capital gains are levied on the gain and depend upon whether they're short term or long term. Do bear in mind that if you hold authority over a foreign account with a balance of over $5,000 at any time during the year you have various US Treasury Department reports that MUST be filed. If you fail to file those reports you risk confiscation of the funds. Additionally there are...

    Price Bonds

    Chester Said:What is the new price of the bonds, given that they now have 19 years to maturity?We Answered:If the yield to maturity is 6%, that would be 3% on a semi-annual basis; then solve for PV based on the following: FV = 1,000 and 38 semi-annual coupons of $35. Then the PV or current price of the bond is $1,112.46Erin Said:The selling price of bonds payable is equal to the present value of?We Answered:c. interest to be paid over the life of the bonds plus the present value of the principal.Lauren Said:How to find purchase price of bonds?We...

    Price Of Bonds

    Christopher Said:Price of existing bonds in response to newly issued bonds?We Answered:Hint. If current bonds pay 5% and the old bonds pay 6%, take the interest rate and divide by the 5% to see what the value of the bond would be.Christy Said:what is the purchase price of fifteen columbia corporation bonds with a coupon rate of 7 3/4 and a current?We Answered:Price per bond = 98% of face of Bond, assume $1,000 + $8 fee + accrued interest from Nov 1 to March 1. Semi annual interest = $1,000 @ .0775 per year, or .03875, = 38.75. Accrue...

    Pricing Bonds

    Howard Said:Where can I get details for bonds and securities?We Answered:You should start talking to the professionals at your bank. You don't have to use your bank to purchase "stocks and bonds", because they usually have disclaimers which state that they are not insured for losses with these negotiables. You can get some suggestions from them as to reputable brokerage houses that will satisfy your requirements. Then you will enjoy success. Steer clear of companies that offer extremely high pay-offs. Too many of those places have gone bankrupt. This, I know that you don't want to hear. What shall we...

    Pricing Convertible Bonds

    Ruben Said:$30 million in 8 percent convertible bonds?We Answered:do your own homework, huh? Max Said:what are the reasons for a company to to redeem bonds? the best answer gets 10 points immediately?We Answered:Generally speaking, companies may elect to redeem bonds if they have sufficient cash on hand to do so or if they are able to refinance them for a lower effective yield (after taking into account any call premiums). A convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio. Although it typically has a...

    Rbi Bonds

    Cody Said:Rise of CRR rate by RBI in INDIA ? In US Do they have same system ? How they control Inflation ?We Answered:The U.S.'s central bank is the Federal Reserve or Fed as it is commonly called. The Fed has many monetary policy tools to control inflation and aid money flow control. However within the last 10 to 20 years the Fed has only used 1 tool: the Federal Funds Target Rate, currently at 5.25%. The Fed can use reserve ratios (and has in the past) like the RBI to control inflation, promote growth, and aid money flow. Federal Funds...

    Revenue Bonds

    Juan Said:What else is there to gain money other then saving bonds and cds?We Answered:Absolutely there is and it can be done safely and securely. You need to educate yourelf to get to that level. The next question, what do you invest in? There are 2 paths and I would suggest both: 1. Own a Business(es) (by far the most profitable and the fastest way to double your money) 2. Investing (this is a longer strategy, but also very profitable) Here are the key points for investing are: 1. You make your money when you buy i.e. you know exactrly how much you are...

    Security Bonds

    Bryan Said:what is the social Security trust fund? how does it work? where do payroll taxes go?We Answered:I'll try to keep it brief. First, current retirees are funded from the inflow of social security taxes currently being paid. Nothing else. Now those revenues are currently higher than the social security outlays have been. That is the social security surplus. In theory it would be nice to save this excess money for the future, when we know that the changing ratio of more old people to fewer young people means that outlays will exceed tax revenues each year. So, in theory this surplus...

    Trade Bonds

    Russell Said:I have bonds from the united states, and i live in canada, where do i trade them in for cash?We Answered:You've already been given the answer by the credit union - they have to go back to the US to be cashed. You're not going to find a bank or credit union in Canada that will cash foreign savings bonds.Jaime Said:How does one trade bonds?We Answered:trading bonds is a little different from trading stocks. The problem is that there is no exchange for most bonds. Instead they are generally traded from dealers' inventory. That makes...

    Valuation Bonds

    Daisy Said:Is the valuation of Preferred Stock similar to that of Bonds? Why?We Answered:NO! If you are concerned about what your security will fetch if you want to sell before maturity, BUY the preferred stock! If you will be holding the security to maturity then the valuation day to day is a meaningless distraction. This applies to both bonds and preferred stock. Preferred stock holders are paid quarterly dividends. It's not unusual to to be able to hold a preferred stock for thirteen months and collect 5 quarterly dividends! The price is listed in the papers...

    What Are Bonds

    Leslie Said:What two types of carbon-carbon bonds are never found in a saturated hydrocarbon?We Answered:Double bonds and triple bonds. They only contain single bonds. Single bonds are just sigma bonds, double bonds are one sigma and one pi bond, triple bonds are one sigma and two pi bonds.Gail Said:Someone told me bonds are not the opposite of stocks. What does this mean?We Answered:YOU JUST HIT ON ONE OF MY PET PEEVES, MY FRIEND. I AM A CHARTERED FINANCIAL CONSULTANT FOR 20 YEARS, PAST PRESIDENT OF MY LOCAL CHAPTER IN 1993, AND I JUST CRINGE WHEN I HEAR THIS ONE. STOCK IS...

    Yields Bonds

    Delores Said:Economics students or Financial professionals, What happens with high interest rates and bond yields?We Answered:Bond yields would rise, yes. They would have to to attract buyers. The price of the bonds would decline.Catherine Said:A fund has a total of $1 million invested in the Stock of ABC Co and the bonds of DEF co. The ABC stock yieldsWe Answered:Let the cost of stock of ABC CO = s & cost of bonds of DEF CO = b, Priniciple = s + b = s + (1000000 - s) =$1 million Therefore, 0.12s + 0.10(1000000 - s) = 115 000 0.12s + 0.10s + 10 000...

    Yields Corporate Bonds

    Guy Said:How to answer a question about Corporate Bonds?We Answered:The question is asking you to figure tax equivalent yield. The answer is "A" http://www.adviserview.com/calculators/i… http://allfinancialmatters.com/2006/10/2…Rafael Said:How do I find out the current yield on General Motors corporate bonds?We Answered:Moody's, Standard and PoorsJimmy Said:Where can i find historical rate charts for corporate bond yields?We Answered:This is about the best I could find. http://finance.yahoo.com/bonds/composite… This is the daily data since 9/25 for Moody's Seasoned Aaa Corporate Bond Index: 2006-09-25 5.36 2006-09-26 5.37 2006-09-27 5.38 2006-09-28 5.42 2006-09-29 5.42 2006-10-02 5.41 2006-10-03 5.40 2006-10-04 5.37 2006-10-05 ...

    Yield Curve Bonds

    Sidney Said:yield curve is upward sloping would short term interest rates to rise?We Answered:Well, if the yield curve is upward sloping, then investors can expect higher returns on longer-term bonds. One would think that investors would flock to these bonds, which would simultaneously cause long-term rates to fall and short term rates to rise until some equilibrium was reached. However, you have to realize that investors, when making decisions on what type of bonds to buy, consider such things as long-term vs short-term payoffs and liquidity, with short-term bonds providing short-term benefits and liquidity, with the opportunity cost of holding...

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