A bond is a loan to a government, agency, or company that is repaid with interest. Bonds can complement stocks and other more aggressive investments in a portfolio. The IOUs of the financial world, bonds represent a government's, agency's, or company's promise to repay what it borrows—...
Why does a bond's price decrease when interest rates increase? Why would someone buy a bond at a premium? What is the effective interest rate for a bond? What is the face value of a bond payable? How do you compute the selling price of a bond?
A yield is the return investors receive on a bond. A negative yield is the opposite, meaning investors are receiving less money than they originally paid.如果债券的收益率为负,则意味着债券持有人在投资中亏损,尽管这种情况很少见。收益率是投资者从债券中获得的回报。负收益率则相反,这意味着投资者收...
For the landlord, this money acts as a security. If, for whatever reason, you can’t pay the rent or there is damage, they will deduct this cost from the deposit. In this instance, you may get back a portion of your bondat the end of the leaseminus what is deducted. When you mov...
How long does a cashier’s check take to clear? Cashier’s checks tend to process faster than ordinary checks. But exactly how long do cashier’s checks take to clear? Funds for cashier’s checks deposited in-person can be available as soon as the next business day — though this varies...
What is debt-to-income ratio (DTI) and how does it affect your mortgage? Your debt-to-income ratio could make or break your chances of getting a mortgage. Understand how it's calculated and what DTI will improve your odds. Continue, What is debt-to-income ratio (DTI) and how does it...
What is the stated interest rate of a bond payable? How do you calculate the actual or real interest rate on a bond investment? What is the effective interest rate? Why does a bond's price decrease when interest rates increase? Why would someone buy a bond at a premium? How do...
ETFs generally hold a collection of stocks, bonds or other securities in one fund or have exposure to a single stock or bond through a single-security ETF. Why invest in ETFs? If you’re looking for an affordable, potentially tax efficient way to access a broad range of asset classes, in...
Does the ETF contain futures contracts? Is the commodity considered a “collectible” in the eyes of the IRS? These factors can come with serious tax implications and varying risk levels. (Learn more: Best commodity ETFs.) Stock ETFs: These comprise stocks and are usually meant for long-term...
determined by the credit rating. According to the rating agency, an issuer is generally more likely to fulfill its payment obligations if its credit rating is better. The cost of the issuer’s bonds will increase as its credit rating improves. Their bond prices will decrease if the rating ...