While the definition of interest remains the same no matter how that interest is paid, in order to suite the needs of both the entity issuing a bond, and the buyer of that bond, different bonds pay out their interest payments in different ways: […]
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Economic Indicators Bond Investors Should Follow
Investors, traders and economists are always looking for signs where the economy is heading. Economic activity affects interest rates in two ways. A growing economy […]
Yield to Maturity – What it is and How it Works
When investing in a bond that is trading at a premium or discount, the current yield is a misleading indicator for the total return you can expect. If you buy a bond trading at a discount, you will be paid the face value when held to maturity. As the face value is greater than… […]
Bond Prices – Where to Find Bond Prices and Quotes
There are several places where you can find free delayed bond prices. Generally speaking, the prices are delayed by 5 – 15 minutes. As most […]
Read a Bond Quote Like A Professional Bond Trader
If you want to invest in bonds, one of the most important things you should learn to do is read bond quotes. There are three […]
Treasury Inflation Protected Securities (TIPS) – What They are and How They Work
Treasury Inflation Protected Securities (TIPS for short) are bonds issued by the US Treasury whose principal and coupon interest payments fluctuate along with inflation. More […]
Bond Credit Ratings – What They are and How they Work
Bond credit ratings are the equivalent to an individual’s credit score and are designed to guage the risk that a bondholder will not receive a portion or […]
Interest Rates and Bond Prices – An Inverse Relationship
What is the the relationship between interest rates and bond prices? As one goes up, the other goes down. Why do they have an inverse relationship? […]