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1answer
104 views

How much would I need to save to keep a fixed income consistent?

If you have a fixed income that was going to continue for the rest of your life, what portion would you need to save to keep it consistent? For example, if you were to get 100,000 per year non ...
1
vote
1answer
27 views

How to calculate the value of a bond that is priced to yield X%

I am currently practicing for a beginners exam in finance. One of the previous exams had the following question: You own a 2 year, £1000, 7% bond, with semi-annual coupons. If the bond is priced ...
4
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3answers
129 views

Why would I buy a bond with a negative yield?

The only reason that I can think of is because I expect the bond to appreciate in price thus offsetting the loss in yield. I could still end up with less money than I started with, if I hold the bond ...
3
votes
1answer
43 views

Where can end-of-day data be downloaded for corporate bonds? [closed]

I would like to download historical end-of-day prices for corporate bonds. What are some websites for doing so? I do not mind paying for the data but Bloomberg is too expensive, even though it is very ...
0
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1answer
51 views

Do buyers of bond ETFs need to pay for accrued interest?

When buying normal bonds, the buyer needs to take note of accrued interest. He should take note whether the price quoted is a clean (excludes accrued interest) or dirty price (includes accrued ...
2
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3answers
89 views

Are junk bonds advisable to be inside a bond portfolio that has the objective of generating stable income for a retiree?

Suppose a person has retired. He would like to construct a bond portfolio that generates stable income for his remaining days. Is it advisable to include junk bonds in the bond portfolio for that ...
2
votes
1answer
76 views

Loan against fixed deposit

I have a few FD's locked in for a period of 2 years. However, I am not very liquid at this point and I need access to that money immediately. What are my options? Can I take a loan against my Fixed ...
0
votes
1answer
74 views

Fixed Index Annuity a wise “secure” investment?

If I have 40% of my portfolio allocated for "secure" investments (such as bonds) are fixed index annuities a reasonable choice to use in this allocation?
12
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4answers
2k 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
119 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
299 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
15k 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
558 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
76 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
173 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
2k 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 ...
3
votes
1answer
133 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 ...
8
votes
3answers
194 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
200 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 ...
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votes
1answer
165 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
445 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
296 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
221 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 ...
6
votes
2answers
999 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
344 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
2k 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
127 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
512 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 ...