What are bonds? - types of corporate bonds
What are the dates and values marturity face? Which bonds are companies, there are different types? What are good things about corporate bonds?
Saturday, January 9, 2010
Types Of Corporate Bonds What Are Bonds?
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Value of a bond, note, mortgage or other security, as stated in the certificate or diploma. Corporate bonds are usually for the nominal value of $ 1000, municipal bonds, $ 5,000 to stocks and bonds of the covenant, compared to $ 10,000 U.S. dollars issued compared. While bonds fluctuate in price from the time they are before the redemption to be repaid until maturity face value, with the exception of issuer default display. If the bonds are retired before maturity, bondholders is usually a small premium over face value. The nominal value is the amount on which you calculate the interest payments. Thus, a bonus of 10% with a nominal value of $ 1,000 to bondholders of $ 100 per year. Face Value is also known as nominal or par value. Corporate bonds are issued by commercial banks to raise capital. They have a variety of risks, and they are appreciated by others in terms of creditworthiness. Investments in corporate bonds may be too conservative or too risky, based on their assessment. IMPORTANT NOTE: Corporate bonds, unlike the low-yielding municipal bonds (Treasury bonds, which pay no taxnationally), are completely passive. In other words, if you receive an interest payment owed Uncle Sam a piece.
To buy a bond directly to the company, he must go through a broker and pay commission. But it is very difficult to know if you get a fair price. You can also invest in bond funds, which specialize in issuing loans to businesses.
Yahoo has some good, easy to understand information about bonds. Jump to:
http://finance.yahoo.com/education/bond
I think that will help.
Bonds are bonds that you make to governments and businesses, or a creditor. Unlike stocks, which makes him a co-owner of the company to other shareholders. If you have purchased, value $ 10,000, for example, General Electric, 53 / 4 2011 bonds, which would receive 53 / 4 percent per year until 2011 on your investment. Interest in the semi-finals, usually paid annually, but may also frequent. Face Value is the amount you receive at maturity and you get your money .. $ 10,000
Big bonds usually pay higher interest rates than the government or government-issued bonds .. The higher the creditworthiness of the issuer of the bonds, which pay interest to sell the public on lower. The opposite occurs with lower values of companies and governments. Evaluations less need for higher prices in order to win money.
I hope that helps.
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