Why do companies issue bonds when they can issue stock? What are the advantages in issuing bonds? Mention one reason why bonds are rarely sold at their maturity value. Describe the types of bonds and how their sales price is determined. Explain why investors would pay more than maturity value...
BONDS: DEFINED What is a bond? In simple terms, bonds are a form of debt. Just as you might take out a loan to buy a car or a house, bonds are a way for governments to borrow money to pay for infrastructure projects, the military and other services, or for corporations to fund th...
In some situations, people may look at debt as a way to make money. Distressed debt refers to bonds being sold by companies either inor near to it. Earle says these bonds may pay as much as 10% more than other corporate bonds.
Independent contractors and others who receive income from sources other than an employer can expect to receive a 1099 instead of a W-2. So, what is a 1099, and how do you use it to file your taxes? Here's everything you need to know about Form 1099, inc
Inflation-Linked Bonds: Inflation-indexed bonds also have maturities of more than a year and they also pay a fixed interest rate each year. The face value of the bond increases with inflation each year, so the actual amount received in interest each year increases and the final redemption valu...
A bail bondsman, also known as a bond agent, is a company representative or an individual acting independently who presents a surety bond to a court of law to affect the release of a defendant who would otherwise be held in jail until trial. These services are made possible by contractual...
Dividend stocks also often benefit from higher yields than bonds when interest rates are low, while simultaneously offering the potential for share price appreciation. Even if the price falls, the dividend can cushion a portfolio with steady income, and if you reinvest those dividends, a lower sh...
How Do Bail Bonds Work? Bail is basically collateral paid to a court as a guarantee that a defendant will appear on their court date. The amount is set by a judge, and the defendant must pay it or go to jail to await trial. Bail bond agents are like loan agents for bail, accepting...
Both I Bonds and EE Bonds offer certain tax benefits. The interest earned on these bonds is subject to federal income tax but exempt from state and local taxes. Additionally, if the proceeds from either bond type are used to pay for qualified higher education expenses, the interest may be t...
In general, bonds pay a higher yield than annuities—but not always. Annuities and bonds are popular ways for investors to generate an income stream. Both are considered members of the fixed income asset class. Bonds are more commonly used since they trade like stocks on the markets. Still, ...