Bonds are debt obligations issued by corporations and government entities. They are typically issued at face value and most are available in $1,000 increments. The durations of bonds can be as short ...
Bonds are often part of many long-term investors’ portfolios because of their ability to add diversification, potentially minimize risk and bring in income. While there are many different types of ...
Zero coupon bonds are taxed differently because they don't pay regular interest. Instead, they're sold at a discount and reach full value at maturity. Each year, investors must report "imputed ...
Most people think of bonds as being appropriate for those who need regular current income without a huge amount of risk. Yet some bonds are structured specifically not to pay income currently. The ...
There is nothing that we Jamaicans love more than a discount. So when we hear that a bond is trading at a discount, the typical response is “Gimme some of that one!” In fact, I have some clients that ...
If you’re looking for an investment that offers predictable long-term returns, you may have come across zero-coupon bonds. But what is a zero coupon bond, and how does it work? Unlike traditional ...
Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...
Lower coupon bonds were hit the hardest in the recent selloff as prices declined much faster than premium bonds, leading some investors to say discount bonds are now cheap enough to buy. Though lower ...
Discount bonds may look simple, like something is offered at a lower price, but they carry a unique mechanism that sets them apart from other fixed-income investments. These bonds allow better ...
In “How Does the Fed Control Interest Rates in a Free Market?” we wrote: Unlike stocks, each bond contract has unique characteristics that define how repayment will occur. Every bond contract has at ...
Investing is income-centric. Most of what people call fixed-income bonds offer some form of regular dividends, usually monthly interest installments. But would you be interested in a financial ...