All Questions
7 questions
18
votes
4
answers
2k
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 ...
- 4,443
6
votes
2
answers
340
views
Bond prices: Why is a high yield sometimes too good to be true?
Thank you for taking the time to explain me this.
I'm looking at bonds prices at Yahoo Finance (see attached image)
And it seems to good to be true: A-rated bonds at YTM rates of 11% and more. What ...
- 163
3
votes
1
answer
192
views
What determines the interest rates of government bonds?
It's not clear to me how the interest rate of a specific government bond changes. I would like to make a comparison with cryptocurrency exchanges.
Consider, for example, the price of bitcoin on ...
- 193
2
votes
3
answers
237
views
How does a bond's coupon rate differ from its market yield rate?
I'm trying to understand how bonds work and am confused by coupon rate vs market yield rate.
Suppose company Foo issues a bond with a face value of $1 million, a 4% annual coupon rate payable semi-...
- 153
1
vote
1
answer
261
views
Yield curves and Bonds
Just struggling with putting the two together and google seems to be failing me.
(1) Are the yields on yield curves annual continuously compounded rates, effective rates or something else like a "...
- 111
1
vote
4
answers
294
views
Locking in rates during yield curve inversion
While reading multiple articles about yield curve inversion, a common theme is that investors seeing an economic slowdown in the future which generally means lower interest rates so they want to lock ...
- 271
0
votes
1
answer
72
views
How can one compare the yield of a municipal money fund with the yield of a municipal bond?
Let's consider the following municipal money fund and the following municipal bond:
The Schwab Municipal Money Fund (Investor Shares) (SWTXX) discloses a 7-day yield (with waivers) as of 02/28/2023 ...
- 11.5k