Calculating a Bond's Maximum Theoretical Value: The Formula With an Example
Traditional bonds offer simple-interest coupon payments over the course of a defined maturity period. When the bond finally matures, the bond’s par …
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Treasury Yield Curve Explanation
The yield curve plots interest rates comparing rates with time to maturity. However, the yield curve is more than a simple graph. The shape and slope …
Continue ReadingShould You Build a Bond Ladder? Insights on Bond Investment Strategies
Conservative investors often have a significant portion of their assets in bonds, for safety, but this can make money difficult to get to. A bond …
Continue ReadingCriteria for Assessing SRI Bond Funds
Bonds should be a part of any investor’s portfolio and investors have a lot of choices today with specialty bond funds, such as SRIs. However, …
Continue ReadingWhat is a Junk Bond? Basic Knowledge for the New Investor
Most investors find junk bonds risky as they are below investment grade. However, these bonds can offer high rates of return and are highly profitable …
Continue ReadingGovernment Bonds: Types of Savings Bonds
U.S. savings bonds are a safe way to set up a savings plan with amounts starting at $25. However, savings bonds are not just for kids’ college …
Continue ReadingInvesting Basics: How Bond Duration Works
Bond investing can become a little more complicated than checking yields and deciding whether or not to buy the bond or bond fund. Bond duration is a …
Continue ReadingTrading: How to Short the Bond Market
Short selling the bond market produces trading profits if bond prices decline. The steps for how to short the bond market require an understanding of …
Continue ReadingHow Bond Market Prices are Determined and Calculated
Bond prices can involve many factors, but they you don’t have to consider them to be too arcane to be understood. Understanding basic terms …
Continue ReadingGovernment Bonds: How do Investors Make Money Buying and Selling U.S. Government Securities
How do investors make money buying and selling U.S. government securities? The possibilities range from simple buy-and-hold to short term trading in …
Continue ReadingUITs: Rating and Performance of Unit Investment Trusts
Price and performance for unit investment trusts is not widely available when compared to mutual funds and ETFs. A method of rating unit investment …
Continue ReadingWhen to Invest InTreasury Inflation-Protected Securities (TIPS)
Inflation-proof bonds sounds like an oxymoron, but they do exist in Treasury Inflation Protected Securities (TIPS). Find out about their relation to …
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