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INVESTING:
Bonds
BondsRecent ArticlesThe 3 R's of Bond Investments - Risk, Returns and Regret?"It's a conundrum." This is what Federal Reserve Chairman Alan Greenspan recently said of the current state of long-term interest rates. The situation that exists with short- term rates getting measured increases, while long-term rates haven't moved much is a topic that has been confusing many people, not just Chairman Greenspan. This 'conundrum' is what we spoke of in our first column because it was perplexing us too. Within a day of Greenspan's testimony, long-term bond prices started dropping substantially, just as we had predicted in the column. Municipal BondsBecause there are so many stocks that are NOT paying dividends and also going down people are looking for a safe investment that will pay a decent return and also won't lose money. Slowly folks are beginning to think about bonds of which there are all kinds. Investing in BondsThe present global economic scenario reflects a trend where the richest has it all. This has led to the proliferation of many brokers and banks, which guide you on how you can make your money work you and earn rich dividends. The free market economy promotes a "winners take it all" environment. As a result, it has become utterly crucial for all of us to invest some portion of our income in bonds and earn some more bucks. A host of financial services are also on offer by different investment gurus who help you decide the right move at the right time when investing in bonds. United States Savings Bonds - How Do I Calculate US Savings Bond Values?A savings bond is a treasury security for investors. In essence, investors are loaning the government money. They are issued both as paper bonds and electronic savings bonds. They cannot be traded but can be redeemed after only one year. There are no dividends, per se, with a savings bond, as the interest payments are simply added on to the value of the bond, but as tax-deferred items, the interest doesn't have to be reported to the government until the bonds are cashed. Corporate BondsWhen a corporation needs to find extra money, one of the ways they raise funds is through selling bonds. You are basically loaning the company money when you purchase a corporate bond. |
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