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2
votes
2answers
2k views

What do the terms par value, purchase price, call price, call date, and coupon rate mean in the context of bonds?

I am having a hard time understanding municipal bonds. What is the par value vs. purchase price? What is the call date? What is the call price? The coupon rate is just the interest paid out to you ...
8
votes
1answer
364 views

What happens to the bond ETF when the underlying bond matures

When a bond matures, what happens to the corresponding bond ETF? It still keeps on going as if nothing has happened. How does this work? I guess there is some kind of rolling over happening here, but ...
4
votes
1answer
1k views

What are the effects of interest rate changes on long-term bond ETFs?

I realize this question has been asked a bunch of different ways over the years, but I was hoping to get specific opinions on how a Fed interest rate increases will affect long term bond ETFs (i.e.- ...
1
vote
1answer
200 views

Does a bond etf drop by the amount of the dividend just like an equity etf

Usually a stock or an equity etf drops by the amount of the dividend on the ex dividend date. Does the same rule apply to a bond fund or bond etf? When a bond etf pays the quarterly dividend because ...