As a bond provides a contractual right to a series of future payments received at specified points of time, the price for a bond is simply the present discounted value of the future cash flows. The ...
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 ...
Discover how below par bonds work, as they trade for less than their face value. Learn why bonds might trade at a discount due to market and economic conditions.
Here's a simple explanation that anyone can understand. If you want to profit from the stock market, buy growth stocks. If you want a steady income stream, without all the market's ups and downs, buy ...
Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...
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 ...
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 ...
If you’re an investor focused on fixed-income securities, the prospect of a discount bond is an enticing one. It could be an opportunity to capitalize on a bond with several years of coupon payments ...
Bonds are a security that represents a loan from an investor to a company or government agency. Learn more about the pros, cons, types or bonds, and how they differ from stocks. Bonds are essentially ...
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 ...