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If your broker's limit was $5k instead of $1k, then your loss might by $50 a year, but even then you likely have access to GIC's or similar products that even more closely mirror the rates from bonds you're …

As a general rule, when you look at the price of a publicly tradeable security, assume it is fairly priced. If a market is reasonably efficient, then any public information about the underlying compan …

Over time, the interest rate environment may change, and if your mortgage rate is fixed, then rising interest rates may cause government bonds to have higher payout rates than your mortgage rate. …

Note regarding sale of bonds after market rates have changed: The value of your bonds will fluctuate with the market. … bonds]. …

Any financial advice that contains 'crystal clear' numbers should be taken as a suggested 'rule of that thumb' from that particular source. And just because a rule of thumb is commonly touted, doesn't …

bond's initially set Principal Amount, Term to Maturity, Coupon Rate, and Price, allow us to calculate its Effective Interest Rate, which, compared with the prevailing Market Interest Rate for similar bonds … For example, if the US Fed Rate is 0.25%, and corporate bonds from very strong companies are typically priced at 3.35% higher than the Fed Rate, then such a bond would be expected to have an effective …

So whether the bonds are comprised of 1% bonds, or 3% bonds, if the current market interest rate for the same risk-level of new bonds is 2%, you can rest assured that there will be a discount or price …

This here's the relevant guidance from IRS: https://www.irs.gov/instructions/i1040sb Basically no, the accrued portion of unpaid interest is still considered regular interest income; see further here …

So you do this yourself, manually taking your interest received, and reinvesting it by buying new bonds. … Next year, you would have 11 bonds, costing a total of $1,100, each paying you $10 every year, so every year you get $110. Repeat ad infinitum. …

Instead of buying a single bond, you could do a bond ladder - assume you buy 12 bonds, all with 1-year maturities, each month of the year. … A blended ETF works the same way, except that there will be maturities continuously occurring, meaning that every day, some bonds mature, dumping value into the ETF, which it then uses to buy new bonds …

The 'appropriate' amount of cash/bonds to hold will be largely a matter of opinion, but here are the general reasons why having at least some is a good idea: Cash is very liquid, and bonds are often … To get the most liquidity out of your bonds, you can do what is called 'laddering'. …

Remember the back-half of that financial rule - in financial theory, tax consequences aside, you can simply use dividends received to purchase back more stock. Therefore in either case, you have the a …

Investing in a bond fund would include bonds bought today that would mature years from now, meaning that if interest rates dropped, you would still see increased performance from your bond fund until those … old bonds matured. …

"My understanding is that stock markets are expected to generate returns above inflation in the long run because companies are paying out dividends and because investors demand compensation for accept …