What are Long-Term Bonds? What is a Japanese Government Bond? What are Investment Bonds? What is an Investment Fund Manager? What is a Closed-End Investment Company? Discussion Comments WiseGeek, in your inbox Our latest articles, guides, and more, delivered daily. ...
Maturity is the date when the principal or par amount of the bond is paid to investors, and the company’s bond obligation comes to an end. Hence, it defines the lifetime of the bond. A bond’s maturity is a crucial consideration an investor looks into based on the investment goals. T...
Coupon rateThis is the annual percentage of interest the issuer pays someone who owns a bond. The term "coupon" originates from when bond certificates were issued on paper and had actual coupons that investors would detach and bring to the bank to collect the interest. Bonds may have fixed,...
A term bond is a type of new bond that is issued by a municipality and carries a single maturity date. The main elements of a...
A bond is a loan to a company or government that pays investors a fixed rate of return. Long-term government bonds historically earn an average of 5% annual returns.
What is a Treasury bond? Treasury bonds, often referred to as T-bonds, are long-term loans made to the U.S. government. When you buy a Treasury bond, you’re essentially lending money to the federal government. In return, the government agrees to pay you a fixed rate of interest every...
Maturity:The maturity date of a corporate bond may be long term (10+ years), medium term (four to 10 years) or short term (fewer than three years). Creditworthiness:This is how risky the investment is for a particular company. A company’s bonds may be investment grade, with less risk...
What is the Purpose of a Bond Ladder Strategy? This strategy is used for a number of reasons. The main advantage of laddering is that aninvestorwill take advantage offixed income securitieswith longer maturities and in most cases higher yields. However, instead of locking into a long-term fix...
A term bond can be contrasted with a serial bond, which has various maturity schedules set at regular intervals until the issue is retired. A term bond refers to the issuance of bonds that are repaid at the same time. Term bonds can be short-term or long-term, with the latter having l...
Long bond is often a term used to refer to the longest maturity bond offering from the U.S. Treasury, the 30-year Treasury bond. It can also carry over to the traditional bond markets to include the longest-term bond available from an issuer. ...