Posts Tagged ‘Interest Rate’

What type of savings bonds are the best to buy?

Saturday, June 5th, 2010
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Jay B asked:

I looked into the treasury direct website and I see that the I-Bonds have a 4.84% interest rate, this seems like a good rate. Is this the best type of bond I can purchase, if not which one is best and why. I will choose best answer for the best explanation.

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How can an increase in the interest rate make bonds more attractive and reduce their price?

Sunday, March 7th, 2010
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chocosonge asked:

The Demand for bonds
an increase in the interest rate makes bonds more attractive, so its leads people to hold more of their wealth in bonds, as opposed to money.
However, you also learned that an increase in the interest rate reduced the price of bonds.
How can an increase in the interest rate make bonds more attractive and reduce their price?

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How to calculate the present values of two corporate bonds? What would be the risk investing in these bonds?

Monday, February 8th, 2010
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Melissa asked:

First one issued 25 years ago at a coupon rate of 7% and the second 5 years ago also at a coupon rate of 7%. Both bonds have terms of 30 years and face values of $1,000. The interest rate on these today is at 10%.

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