Archive for the ‘Investing’ Category

What is the new price of the bonds, given that they now have 19 years to maturity?

Wednesday, April 21st, 2010
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RayRay asked:

A corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?

convertible bonds

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What happens to exisitng treasury bond prices when the government decides to issue new treasury bonds?

Monday, April 19th, 2010
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Jeff D asked:

What happens to exisitng bond prices when the government decides to issue new treasury bonds?

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How do bonds work. I want to know how they figure out how much money I will get from them in 20 yrs?

Thursday, April 15th, 2010
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happydawg asked:

I have about $1500 dollars in I bonds. How do I know what the return is on them in about 20 years. What else should I invest in. I am a single 42 yr old RN with my kids on there own.
I have a 403B thru my employer with about $40,000 dollars in it and I make about $60, 000 a year. I contribute $300 a month to a credit union savings account, and I am not sure what the balance is on that, probably not more than $1200. I would like to make some investments somewhere, but not sure where to go from here. My home is paid for. It is a dump, but it is mine.

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What is the difference between Corporate Bonds and Corporate Debt Funds?

Sunday, April 4th, 2010
ac26xp asked:

For example I can buy shares of the exchange traded fund: IShares SP US Preferrd Stock Index Fund (PFF), which is classified as a Corporate Debt Funds BBB-Rated.
Is a corporate debt fund like PFF a collection of corporate bonds?
Thanks !

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What is the best way to invest in bonds in a taxable account?

Friday, February 26th, 2010
John asked:

My goal is long-term growth because I have a stable and highly paid job. I want to use bonds to diversify my stock portfolio. Quality (low default rate), low cost, and tax efficiency are the most important to me.

I’m considering Vanguard or Fidelity bond index funds for their low cost and diversification.

I’m also considering IBond (US Saving Bond Series I at TreasuryDirect.gov) for its tax deferral, tax-exemption when redeemed for my education, and guaranteed principal plus interests at maturity.

How do you invest in bonds in your taxable accounts? Why?

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