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Questions tagged [bonds]

Use this tag for questions that relate to debt instruments known as bonds. Generally, money is lent to governments or corporations that is paid back with interest.

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How to buy I bond for child and spouse?

To purchase I bond I followed the steps below: Opened TreasuryDirect account using my SSN and other information. Purchased a I Bond under my registration. Created a new Primary Owner registration ...
LP13's user avatar
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Are Credit Default Swaps an adequate hedge for leveraged bond portfolio?

A hedge is supposed to be a cheaper bet that pays off if a primary bet isn't profitable. With a leveraged bond portfolio, my understanding is that a credit default swap (CDS) can help hedge, but I'm ...
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Are foreigners who buy UK ETFs subjected to a withholding tax?

Currently, when a foreigner buys U.S ETFs, the dividends or income (in the case of bond ETF) will be taxed at 30%. Suppose a foreigner, say an American or Singaporean, buys a UK bond ETF. Is there a ...
curious's user avatar
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Does the yield spread between inflation-indexed bonds and regular bonds overestimate inflation expectations?

Inflation expectations can be determined from the yield spread between inflation-indexed bonds and non-inflation-indexed bonds. For example, US inflation expectations for the next 5 years can be ...
Flux's user avatar
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Subsequent returns of bond higher than the initial bond yield

I am currently reading Bogle's common sense investing. In one chapter he states that the initial yield of a 10 year U.S. Treasury Note has a high correlation with the subsequent 10 year return. That ...
Straighter's user avatar
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What drives long duration US Treasury Bond ETF prices?

I am looking at TLT, for example, a long duration (with average maturity around 25 years) bond ETF. I noticed that the fed funds rate (or the "interest rate" from federal reserve) has been ...
Dzt's user avatar
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How can I gain exposure to long term treasuries across the entire globe?

A "Long-Term Treasury" fund typically holds US government debt with a long expiration date, for example, 20 to 30 years in the future. It is frequently cited as a useful portfolio component ...
Kevin Burke's user avatar
2 votes
1 answer
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Net Bond Coupon/Yield

I just wondered on how one can properly get the Net Bond Yield/Coupon given that you had some "trading" that happened. Suppose, I have a group of bonds (say some Treasury bonds). I acquired a 100 Par ...
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Buy shares and bonds in non citizens countries

I am from Sri Lanka and I invested in stock market and bond in Sri Lanka. But I really like to buy other countries shares and bonds. Is it possible to buy those thing without citizenship. I know ...
saji indra's user avatar
2 votes
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187 views

Question Regarding Bond-Coupon Prices with Partial Period Maturity Date

Question: What would you pay for the following bonds assuming an annual yield rate of 7% based on semi-annual compounding (assume face value = $100)? A bond with a coupon rate of 6% maturing in 3 ...
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How do you use the formula for YTM when the compounding is semi-annual?

How do I calculate yield-to-maturity (YTM) with a simple handheld calculator? do we multiply n by 2?
george's user avatar
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TNote 10yr Futures YTM vs market yield?

I understand how to calculate the yield on a 10 yr TNote based on face, price & coupon. I don’t understand why the yield (and price) on a futures contract about to expire is so different than the ...
RiskIt's user avatar
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What are gross concessions on filling 424(b)(2)?

In this filling, for the bond with CUSIP 92346MLS8, the "Gross concession" is 3.150%. Is this the total fee paid to issue the bond? Why is it so high for a bond with a fixed 5.3% coupon?
Tiago Bértolo's user avatar
1 vote
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How to interpret auction/issuance results?

If a new bond (issuance size of 300M) was 3X covered and had 40 buyers, what does it mean?
the_brass_bottle's user avatar
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How is implied volatility on future treasuries used to expect Forex volatility?

I was listening to some traders talk amongst themselves. One emphasized the importance treasury implied Vol as a useful indicator for forex vol/trading. I don't totally see the connection. I have a ...
MeditationOrBust's user avatar
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372 views

Price of Bond with irregular long first coupon period

I'm trying to manually calculate the price of a bond with a long first coupon period, found a few candidate formulas on Microsoft Excel Document: OddFPrice mit.edu: OddFPrice WestClinTech.com: ...
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Need help understanding bond yield outliers

I was looking at bond yields on Fidelity and noticed a few outliers. The tables below show the 'Highest' and 'Median' yields. Note the outliers - Agency/GSE 10yr and Corp AAA 2yr - where the highest ...
hojusaram's user avatar
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What is the unhedged version of VBU?

I know I should be able to find this, but I don’t see it listed anywhere online. I want to find the Canadian version of Vanguard’s total US Bond index (BND), I see VBU but this is hedged against the ...
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How do I calculate I-Bond growth?

I'm looking into purchasing $10,000 of Series I Savings Bonds every year. I'm trying to understand what the formula is for their growth. I looked at bond calculators, but to be honest, I'm not very ...
John Smith's user avatar
1 vote
1 answer
224 views

Understanding how bond prices change

I came across following statement regarding Indian debt funds in ValueResearch ebook: The RBI announced retracting ₹2 lakh crore of banking funds through a 14-day reverse-repo operation in January ...
Mahesha999's user avatar
1 vote
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190 views

What does the bond issuer/company do when the bond is oversubscribed?

I'm a beginner, I see sometimes in news that a company issue bonds (1 million total issuance), but they received 3 million requests, what will they do with the two million excess ?
huab's user avatar
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Question about the premium from selling bonds

Suppose I bought a $1000 ten-year treasury note (2031) with 4% yield. After one year, the yield decreased to 1%. If I sell it, how much premium will I get? Will I get (3% * 1000)? If the calculation ...
huab's user avatar
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BTP Bund spread interpretation

I know that the BTP/Bund spread is the spread between the German and Italian 10 year bonds. But I am unsure how we interpret the actual number and more importantly the drivers behind the spread ...
learningmathematics's user avatar
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US Treasury yields and equity prices

I am a bit confused about what is going on in the markets right now. To my understanding, rapid increases in Treasury yields have prompted equities selloffs. However, bond yields only go up when ...
Victor M's user avatar
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Pennsylvania Taxation of Treasury Bonds Purchased on the Secondary Market

How does Pennsylvania tax the following items for TREASURIES (purchased on the secondary market): Accrued Market Discount (1099-B Box 1f) Bond Premium on US Treasuries (1099-INT Line 12) Accrued ...
user1200233's user avatar
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0 answers
182 views

How do I get a 'copy of a cheque'?

Sorry if this is a stupid question, but how do I get a copy of a cheque? I'm going through the process of encashment of some bonds which I received as inheritance, to do this I need to send over a ...
Charlie Tizzard Ó Kevlahan's user avatar
1 vote
0 answers
39 views

Earnings coverage calculation confusion

I am working my way through security analysis by Benjamin Graham (sixth edition) and have come across some calculations that do not make sense to me. This is the paragraph that precedes the data that ...
Jake O'Neill's user avatar
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0 answers
26 views

Which SEC forms do public companies file when they issue new bonds?

Which SEC forms do public companies file on EDGAR when they issue new bonds? Judging by Coca Cola Co and Apple Inc. SEC filings, the relevant forms seem to be: Form 424B2, Form 424B5 — the prospectus ...
Flux's user avatar
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1 vote
1 answer
358 views

Callable and putable bonds

I am trying to synthesize everything I have learned about callable and putable bonds. Is the following information accurate? A callable bond bought at a discount will have yield rate greater than ...
kccu's user avatar
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Why do some monthly bond ETFs have no dividend in January?

For example, the following bond ETFs have monthly dividends except in January: 1) https://www.nasdaq.com/market-activity/funds-and-etfs/vteb/dividend-history: ------------...
Franck Dernoncourt's user avatar
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Why did US junk bond funds fall from mid 2014 thru early 2016?

The Federal Funds rate was 0% the whole time, and the Prime rate stayed at 3.75%, so it seems that investor fear was the cause. What caused them to be afraid? Here shows how two big junk bond ETFs ...
RonJohn's user avatar
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1 vote
0 answers
56 views

Can a capital loss on a gilt be set against the interest received when tax is calculated?

Say if I buy a 3.75% gilt for £103, with a redemption date 1 year from now, then at the the end of the year I should receive £3.75 interest from coupons, but I lose £3 of capital. The total gain is £0....
Paul Hughes's user avatar
1 vote
0 answers
48 views

Computing risk-neutral probability of spot rates

I am trying to use a binomial model to price options wtih bonds as the underlying security.If the current term structure is flat at 6%, but next year, I assume the one-year spot rate will be either 5% ...
student12345's user avatar
1 vote
0 answers
35 views

How does a typical bond ETF provide tax information to the investor in Canada?

Before deciding whether to use registered or unregistered (taxable in Canada) account, I'd like to understand the complexity of tax reporting as a result of holding bond ETF, for example BMO ZFL (long ...
Joe's user avatar
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1 vote
0 answers
77 views

confusing returns from bonds

New to bond investment and seek clarification - On Charles Schwab Bond Source chart for fixed income offerings, the followings are listed CD 1yr: 2.6 Muni (AAA) 1yr: 2.71 I assume it meant annual ...
B Chen's user avatar
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1 vote
0 answers
548 views

Early tender offer is less than the current value of the bond. What is the benefit?

I received an early tender notice for a bond I hold: Terms: $815.00 per $1000 P.A. plus int. In addition, holders who tender their notes prior or on 08/25/16 (The Early Tender Date) are ...
Daniel Storm's user avatar
1 vote
0 answers
231 views

Are bonds taxed every year or only at maturity

If I buy a bond that matures in 2 years, do i pay taxes only when i get my principal and interest back at maturity? Or do i pay some taxes on year1 and rest on year2?
Victor123's user avatar
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0 answers
43 views

Simple YTM calculation

I'm working the following problem, but getting the wrong answer. Any feedback appreciated. Suppose you bought a five-year zero-coupon Treasury bond for $800 per $1000 face value. Assume the yield to ...
Hank's user avatar
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Choosing government bonds of similar maturity to hold to maturity, shall I just go for the highest YTM one

I wanted to buy some government bonds of roughly 3yrs to maturity and planned to hold it to maturity. My bank's app showed 3 bonds of that maturity but one is 0.1 percentage points higher in YTM. Is ...
jf328's user avatar
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0 votes
1 answer
62 views

Calculating Bond YTM for different maturities

I'm a bit confused on how to calculate the YTM of a bond with less than a full coupon's worth of periods remaining. If I have a bond with 7 months to maturity with the next coupon payment due in 1 ...
LitRan's user avatar
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0 votes
0 answers
59 views

Questions relating to a novel asset pricing model

I'm creating a pricing model for an asset that is similar to a bond, but there are some quirks that I'm unsure how to work out. The asset is a tax lien, in which delinquent tax bills (usually on ...
Felix_Farb's user avatar
0 votes
0 answers
59 views

Bond interest reported on Box 3 of a 1099-MISC

A friend of mine has a significant amount of variable interest bonds. In certain cases, I believe the issuer could have paid the bond off with stock. His broker reported the interest on these bonds on ...
Bob's user avatar
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0 votes
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When should I purchase Savings I bond up to the limit annually if money allows?

When is a wise choice to purchase Savings I bond up to the limit annually if money allows for higher interest rate and diversification purposes? When is it not a wise choice? Thank you.
HelloDarkWorld's user avatar
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0 answers
55 views

How do market-makers make a profit in the bond markets?

Do they sell at ask, buy at bid? Meanwhile, investors buy at ask and sell at bid. So, do the market-makers profit from the bid-ask spread?
darkuss's user avatar
0 votes
0 answers
77 views

Am I grabbing data incorrectly, or are massive chunks of data missing from Yahoo Finance?

13 month treasury bill has almost half of its data missing 2010-2022 Has anyone else encountered this problem? This is ticker "IRX", for reference. This also happens with others big datasets,...
jake martinez's user avatar
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0 answers
118 views

EE Paper Savings Bond reads MAIL TO:?

This was issued 23 years ago. Below my Son's name reads MAIL TO: and gives a person's name and PO Box address. I don't recall how I purchased this, and who this person is, but how does my Son find out ...
EEBONDQUERY's user avatar
0 votes
0 answers
84 views

Best place to keep savings for home down payment?

I'm currently saving for a first home down payment (in USA), but don't want to keep a large pile of money sitting in a low-yield savings account while I'm looking for the right home. I want to find a ...
MikeyC's user avatar
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0 votes
0 answers
28 views

Choosing between a deep discount bond and a loan with variable interest rate

I was wondering what kind of a method should be used to choose between a deep discount bond and a loan with variable interest. Since one option has a fixed rate, and the other has a variable interest ...
Heisenberg's user avatar
0 votes
0 answers
50 views

How is it not illegal and more importantly ethical for Additional Tier-1 bonds to be written off in case of rescue or liquidation of the company?

Additional Tier-1 (AT-1) bonds issued in India, as I understand is regulated by RBI, the central bank in the country. It seems if the company faces severe losses,the RBI can then activate a Point of ...
schizoid_man's user avatar
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0 answers
42 views

Calculating bond duration and price change when yield changes

I've been working on this forever and I'm still not sure if my answers are correct. My question is: A 10 year bond with a face value of $1000 paying semi-annual 7% coupon. Bond is paying 7% YTM. ...
Roger's user avatar
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