Acquire bonds with different maturity datesto diversify your bond holdings. A mix of issues maturing in one, three and five years will protect you from getting hurt by interest rate movements you can't control.Mutual fundsare an excellent way to achieve diversity in your bond investments. Issuer...
or low in this area. The horizontal axis ratesinterest rate sensitivity, as given by the duration of the bonds in the portfolio (maturity). Duration categories include short, intermediate, and long. Each underlying bond in a fund's portfolio has its own credit quality rating and a set maturi...
One of the key things to research when performing investment due diligence on a bond is to evaluate the bond’syieldor interest rate return. This evaluation of a bond’s yield, however, can be performed in several different ways and lead you to different conclusions. Furthermore, specific typ...
exchange and traded throughout the day. There are funds focusing on corporate, government, municipal, international and global debt, as well as funds that track the broader Bloomberg Barclays Aggregate Bond Index. Investors can also purchase bond ETFs that focus on specific ranges of maturity dates...
View duration in the Fixed Income Analysis tool to see the duration of your bonds, CDs, and bond funds. Also, model the hypothetical addition to your portfolio of new bonds to see how they might impact the duration of the overall portfolio. Accessing the duration of an individual investment...
may have subsequently either moved those deposits out of the banking system to alternative savings vehicles such as money market mutual funds (MMFs) or spent those deposits in a way such that those deposits left the banking system, as we describe in the Appendix. In addition, the more subdued...
•A bond quotation gives the bond's interest rate (coupon rate), maturitydate, rating, current price, and whether it's callable. 19.8 Investing in Mutual Funds and Exchange-TradedFunds Understanding Mutual Fund Quotations •A mutual fund is an organization that buys stocks and bonds and then...
Brown, Bruce
Unlike CDs, which lock your funds up for a set time unless you’re willing to pay an early withdrawal fee, bonds can typically be bought and sold in the secondary market. The bond duration directly impacts the liquidity and price volatility in the bond market. Longer-duration bonds may be...
Making connections - use understanding of the concept taxation on of bond mutual funds interest Additional Learning Make sure to check out the accompanying lesson Tax Treatment of Mutual Funds: Description & Overview to learn more about the topic. The following topics can be studied: Cost basis...