What is a BOND fund?Focuses on the structure of bond funds. Pricing; Investment returns; Benefits for investors.EBSCO_bspPersonal Investor
Due to the inverse relationship between interest rates and bond prices, a long-term bond has greater interest rate risk than a short-term bond. Understanding Bond Funds For many investors, a bond fund is a more efficient way of investing than buying individual bond securities. Unlike individual ...
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. ...
Other bond funds focus on a narrower slice of the bond market, such as a short-term Treasury fund or a corporate high-yield fund. Whether the fund’s mandate is broad or narrow, bond funds invest in many different securities—often buying and selling according to market conditions and ...
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 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.
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...
Long-term:bonds which mature over more extended periods of time Medium-term:Maturity dates of these bonds usually are over ten years Short-term:tend to mature within one to three years Secured/Unsecured A bond can be of two types - secured or unsecured. Typically, a secured bond pledges cer...
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 ...
all bonds. Bond fund managers regularly research the fixed income markets, buying and selling bonds based on changes in the economy and the market, and to meet investor withdrawals. Because fund managers are regularly buying and selling bonds based on market changes, there is a possibility that ...