2
votes
1answer
213 views

Bond : Difference between coupon and yield

On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
2
votes
1answer
39 views

Deflation Risk on TIPS

From P18 in ETF for Dummies, 2nd Ed (2011) by Russell Wild: Such bonds do, however, carry interest-rate risk, and another risk that’s unique to them: deflation risk. If consumer prices start ...
3
votes
2answers
475 views

Is a “total stock market” index fund diverse enough alone?

I'm just getting into investing (currently small amounts, to increase dramatically when I finish off my moderate interest student loans). From what I've read, index funds are the way to go, and I like ...
2
votes
2answers
561 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 ...
7
votes
1answer
625 views

Yield of a municipal bond with a sinking fund?

How do I calculate my expected return if I buy a municipal bond at a premium with a sinking fund feature? For example, I'm looking at a bond with a coupon of 5.5%, maturing July 2015, with the ...
1
vote
2answers
375 views

Is there a fool-proof way to keep up with inflation? [duplicate]

I know I can keep cash in an interest-based bank account, but that type of investment will not keep up with inflation, it seems. Would I be right to assume that government/corporate bonds can keep up ...
8
votes
1answer
218 views

Investments: Feds buying more treasury bonds? How does it affect Bonds (going up or down)?

I have set up a 401(k) and I have bonds. When the Federal Reserve buys more treasuries (today's news) what's the effect on bonds? Should I sell my bonds or buy more?
1
vote
1answer
48 views

Taxation of muni bond bought at a premium

Interest received from municipal bonds is generally tax-exempt at the federal level (and at state level if purchaser resides in the issuer states). Conversely, does this mean that a purchaser cannot ...
3
votes
2answers
224 views

Does Hurricane Sandy or other natural disasters make it a good time to buy US Muni Bonds?

With all of the destruction of property and the repairs that will need to be done in the coming months. Is shortly after a large natural disaster a good time to buy a Muni bond ETF of some sort?
2
votes
1answer
132 views

Using stable short-term, tax-free municipal bond funds to beat the bank?

I was lately been looking into some investment strategies, and I thought that short-term, all-single state municipal bond funds (which are free from both state and federal taxes), might be a good way ...
3
votes
2answers
286 views

How to analyze risk of a bond?

If given the screen below as an example, how would you analyze the risk of a bond? I am not sure what to look for to know if this is a good investment. What risk factors should be considered when ...
3
votes
2answers
371 views

Short-selling treasuries instead of borrowing on margin?

Let's say I have a diversified investment portfolio, and I wish to tap a relatively small amount of cash (less than 5% of the portfolio's value) without liquidating any of my positions. I could ...
11
votes
5answers
166 views

What to sell when your financial needs change, stocks or bonds?

Say I have a portfolio composed of 80% index funds, and 20% bonds. This portfolio was created under the assumption I would have a relatively large income, and wouldn't need to withdraw any funds for a ...
6
votes
3answers
355 views

What factors affect the yield and “trade value” on an exchange of a junk bond ETF?

In an effort to further my grasp of financial derivatives available for speculation and losing money, I realize I need further understanding of how "high-yield corporate", aka junk bond ETF's, "work" ...
11
votes
3answers
987 views

What is the difference between a stock and a bond?

I am just learning about finances (only 14 years old) and have heard about Stocks and Bonds and I would like to know the difference between these two things and wonder why would I invest in one or the ...
7
votes
3answers
732 views

Is there a widely recognized bond index?

S&P 500 is a widely recognized stock index, that many people benchmark performance against, and you can find 'passive management' funds that compete to replicate it at as low a fee as possible. ...
3
votes
2answers
682 views

Asset classes: Is a Guaranteed Investment Certificate (GIC) considered a bond?

When we think of asset classes, there are 2 types: stocks and bonds. Where does an investment like a GIC fit in? It is not a bond, nor is it a stock.
6
votes
2answers
374 views

Looking for suggestions for relatively safe instruments if another crash were to happen

My current investment strategy involves having 20% as liquid cash, 30% as bonds (aggregate bond fund), and 50% as a mix of domestic and international equity. The stock portion is invested via index ...
4
votes
3answers
1k views

Does an issue of bonus shares improve shareholder value?

What I know is that, a splitting of shares doesn't improve shareholder value. It merely increase the number of shares. Hence, a splitting of stock shares improves market liquidity. But what about ...
13
votes
2answers
1k views

How would bonds fare if interest rates rose?

The first thing I learned about bonds is that when interest rates rise, the price of existing bonds tends to fall. Unfortunately, I didn't learn much else about bonds. So I have a couple questions ...
6
votes
1answer
558 views

Where can I research corporate convertible bonds?

I am trying to research corporate convertible bonds online, but I have not found a site that provides this information. Does anyone know where I can find information online, e.g. ...
7
votes
2answers
600 views

In the U.S., what is the easiest way to buy Australian government bonds?

The NY Times says: He cited the example of buying a one-year Australian government bond, yielding 5.25 percent. He said he believed that the American dollar was going to lose value and the ...
16
votes
5answers
4k views

What is a good asset allocation for a 25 year old?

I have a mid-sized portfolio (under $100K). And am currently in 100% stocks. I have seen some advice being given that states 80/20 bonds will yield similar returns as 100% stocks with less volatility. ...
4
votes
1answer
696 views

How to buy Greek bonds either directly or via ETF?

Is there an online brokerage, for UK citizens, that provides access to Greek bonds? Interactive Brokers doesn't. Alternatively, are there other assets (say ETFs) that have a percentage invested in ...
3
votes
1answer
423 views

What are prize bonds? Are prize bonds a good investment?

What are prize bonds? Are prize bonds a good investment?
9
votes
1answer
322 views

What is a Samurai bond?

I saw this term "Samurai Bond" while I was reading about investing and bonds, but I am not sure about what this is. Can you please explain?
8
votes
1answer
4k views

What are some examples of “Fixed Income” investments?

I'm using an online tool that my broker provides for balancing my portfolio according to my investor profile and it breaks down the suggested allocation into the following categories: Large Cap ...
8
votes
2answers
163 views

Has anyone found U.S. Savings Bonds to be effective investing?

Since I was a small child, my grandparents have given all of their grandchildren savings bonds on our birthdays. I'm not sure if it makes a difference, but they are always "EE" series. I had to use ...
7
votes
3answers
406 views

Should I buy individual bonds for my retirement portfolio, or stick to funds/ETFs?

To avoid the fees on bond mutual funds or exchange traded funds I have been thinking of buying actual bonds inside of my retirement portfolio. Does that make sense or are there drawbacks to consider?