The tag has no wiki summary.

learn more… | top users | synonyms

11
votes
4answers
1k views

I'm not broke, but I'm feeling stuck on a fixed income

I'm living on a fixed disability income, with little hope of ever being able to work again. I cannot receive any income of any kind while on disability (or I have to pay it back anyway, and risk ...
2
votes
1answer
81 views

Where should I invest if my new 401(k) provider doesn't offer a low risk option?

My company is changing 401(k) providers. I have my small nest egg in a guaranteed interest account with the current provider. The new provider does not offer a fixed interest account. Furthermore, ...
0
votes
1answer
71 views

Why YTM is higher than current yield in discount bond

I learned that in discount bond, coupon rate < current yield < YTM and the relationship will always hold. I can figure out why coupon rate < current yield. But just cannot don't ...
3
votes
1answer
1k views

What is the difference between a perpetuity and an annuity?

Both an annuity and a perpetuity pay a stream of income on a periodic basis. What is the difference from the beneficiary's point of view? Possible differences might be: an annuity isn't payable ...
3
votes
3answers
271 views

Should I sell shares to buy a home so I avoid a mortgage? [closed]

I'll be retiring next year, and I want to be in my own home (aging-in-place). Should I sell stocks to buy it outright and thus avoid a mortgage as I move to a fixed income. But what about capital ...
1
vote
1answer
60 views

Are GIC and term deposit interest rates fixed, or do they vary?

If I buy a 1 year GIC (term deposit) at 1.75%, and two months later, the rate changes to 1.5%, am I still locked in the original interest rate of 1.75%? Or will the bank pay 1.75% for the first 2 ...
5
votes
3answers
156 views

Why did prices of Treasury securities go up when US lost its AAA credit rating in 2011?

When the credit rating of a fixed-income security is cut, this means the security has higher default risk. What follows is that the price will go down. However, the opposite happened in 2011 to US ...
0
votes
1answer
1k views

Are Bond Coupons reinvested at YTM

I fail to understand reinvestment of coupons to calculate YTM. I understand that YTM is the rate at which coupon payments and ParValue of the bond are discounted to today.i.e C-Coupon & T-Time ...
2
votes
1answer
122 views

Is there an investment vehicle that simplifies the work of setting up a bond or CD ladder?

I am interested in investing a portion of my portfolio in fixed-income investments, as anemic as they are lately. Conventional logic says that it might be smart in such a down market to use a ...
7
votes
3answers
145 views

What are the contents of fixed annuities?

This is a personal finance question as annuities are only as good as the company that insures them. Annuities from reputable companies often yield 7% or more on paper before any fees, taxes or ...
6
votes
1answer
185 views

Why aren't companies calling their 7%+ notes if interest rates are so low?

Here's an example of a corporate fixed income issue: GOM. General Motors Acceptance is paying 7.375%. It's callable at $25, which is right around where it's trading. (That's par.) Since interest rates ...
-1
votes
1answer
155 views

fixed income calculator

where can I find a fixed income investment calculator? How much income can I expect monthly if I try to live off the interest alone? Are there any penalties for switching investment strategies?
3
votes
1answer
377 views

Pay off mortgage or invest in high value saving account

I have a mortgage of 30 yrs amortization and have 290k left on the mortgage. It suddenly hit me that with my bi weekly payment of 620, it would take forever to pay it off. I need some help deciding if ...
3
votes
1answer
172 views

Why is the Macaulay Duration recalculated after each coupon payment?

I'm trying to understand why Macaulay Duration is recalculated after each coupon payment. I can see why I want to know the duration when purchasing a bond - to figure out how long till I recoup my ...
3
votes
1answer
217 views

Using the Law of 72 to compute residual income?

Often I check an investment strategy's performance by summing the year-to-date realized gains/losses. I take the sum of all closing(or market for unrealized) values CT, subtract the sum of all cost ...
5
votes
2answers
851 views

What are short-term fairly liquid investments with attractive yields?

I am looking for fixed-income investments or investment strategy that offer quarterly liquidity and attractive annual effective yields and low risk (i.e. holding the security for a a quarter should ...
2
votes
1answer
310 views

What is the difference between fixed-income duration and equity duration?

I noticed this question, How to determine duration of a common stock whose dividends grow in perpetuity? I am familiar with the concept of duration for bonds, but not for common stock (actually, it is ...
1
vote
2answers
682 views

What's the difference between Currencies and FX desks at investment banks?

I'm interested in working within FX in an investment bank, but I noticed that they listed Currencies and FX separately under Fixed Income, so I'm wondering if they actually refer to different things. ...
4
votes
2answers
118 views

Is a book from 2005 about fixed income securities obsolete, or still relevant?

This is intentionally a very broad question. How much (if at all) has the fixed income securities market changed from say 2005 to present day? The main reason I ask is because I am debating whether ...
9
votes
5answers
366 views

Are long-term bonds risky assets?

I think bonds are debt/loan and fixed-income, so they are risk-free, both short term and long term. But it seems like Bodie's Investment thinks long-term bonds are risky: For example, assume that ...