| (Published: Sun, Sep 24, 2006 20:03:30) |
| What is a bond? |
| A bond is a debt instrument with a fixed interest of monetary assets issued in an agreed period of time. Bonds are normally used by people to finance their busi |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| Who issues bonds? |
| There are different institutions who issue bonds. They issue bonds to produce funds for their undertakings. These are commonly categorized into five main issuer |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| How do I buy a bond? |
| There are two means of purchasing bonds: discount brokerage or full service. The full service broker will provide you with ample bond services from pl |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| When does my bond mature? |
| Bond maturity varies depending on the original agreement. It may be as short as one year to as long as a hundred years. These are some bond maturity classificat |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| How do I cash in my bond? |
| You can redeem your cash bonds by contacting your broker, local banks, and local financial institutions. Encashment of bonds will require you to verify your ide |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| What do I do if I lose my bond? |
| Lost, destroyed, or stolen bonds can be replaced without any extra charges a long as the Bureau of the Public Debt can determine that the bonds haven't been cas |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| Is my bond transferable? |
| Bonds are basically IOU's, or a form of debt instrument, which you will pay in a certain period of time. You can transfer a bond if the bond is a bearer bond. A |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| What is the relationship between interest rates and bond prices? |
| The relationship of bond prices and interest rates is an inverse relationship. For example, a bond with 6% interest will meant that it pays $60 annually per $10 |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| How do you evaluate the risk of bonds? |
| You can evaluate the risk of bonds by looking at the investment goals of a particular bond, the average maturity, the duration, the credit quality, the performa |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| What is a tax-free bond? |
| Basically, a tax free bond is a type of bond that should have lower interest rates. Usually called munis, tax free municipal bonds will not require you to pay f |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| How do I decide between a tax-free or a regular bond? |
| Deciding to choose a tax-free bond or a regular bond is very simple. All you have to do is follow these simple steps in order to determine which will be more be |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| What is the difference between stocks and bonds? |
Stocks and bonds are basically similar, yet they have differences. Here is an explanation of how they are similar and how they are different:
- Stocks – |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| How do you get started investing? |
| Investing in bonds and doing it right may mean financial independence. It can also mean financial loss if you don't do it right. Here are a few steps you should |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| Where can I get good investment advice? |
| Your financial advisor can be the most reliable person to talk to when it comes to giving advice about investing in bonds. However, you can also use the interne |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| How much tax do I pay when I cash in my bonds? |
| It depends on what interest rate you acquired. You have to pay taxes on earnings in federal taxes. But bonds are exempt from state or local taxes, which mean yo |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| Where should I start to learn about buying stocks? |
Most novice investors try to learn all the basics before they engage in the actual buying of stocks. You just need to remember the rule that "if the ear |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| What do the credit ratings on bonds mean? |
| Credit ratings help assess how likely a borrower is to repay its bond on time. This is considered an important factor for maintaining the credibility of a borro |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| What are the factors to consider when deciding which bonds to buy? |
| Duration is an essential factor when choosing the right bond to invest in. This involves the time in which an investor can recover his investment. It is compute |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| Why do some bonds sell at a premium while others sell at a discount? |
It must be clear that the share price is subject to factors like supply and demand and closed-end funds that are rarely traded at their net-asset value. In o |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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| (Published: Sun, Sep 24, 2006 20:03:30) |
| Is there a limitation on the number or amount of Series EE and/or I Bonds one can buy? |
| Yes. There is always a limitation in these cases. The bonds that you purchase for educational savings are always subject to the limitations set by the governmen |
| Author: Asael Becker |
| Category: Finance - Bonds Questions |
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