FAQs tagged as

Bonds And Fixed Income

  1. What is a triple tax-free municipal bond?

  2. Besides a savings account, where is the safest place to keep my money?

  3. How does TARP affect the economy?

  4. How can I invest in a foreign exchange market?

  5. What is "whoops" and how did it come to refer to one of the biggest municipal bond defaults in history?

  6. How does the money from the interest on my bond get to me?

  7. How do open market operations affect the U.S. money supply?

  8. The security which offers the best protection against purchasing power risk or inflation is which of the following?

  9. Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?

  10. If a client has a very low risk tolerance, all of the following might be suitable investments EXCEPT:

  11. What protects an investor’s interest in the case of terrorist sabotage, or act of war that destroys the electronic record of stock ownership?

  12. How are bonds rated?

  13. Why are most bonds traded on the secondary market "over the counter"?

  14. Are U.S. banks authorized to issue bank guarantees or medium term notes (MTNs)?

  15. Why is debt issued in both temporary and permanent forms?

  16. The risk an investor is most likely to face when investing in a discounted U.S. Treasury bond is

  17. What are G7 bonds?

  18. The interest rate used to define the “risk-free” rate of return is the

  19. The risk an investor is most likely to face when investing in a discounted U.S. Treasury bond is:

  20. Which is TRUE about Treasury bond futures?

  21. What was the most miserable day for financial markets according to the Misery Index?

  22. What is the difference between yields and interest rates?

  23. What is an absolute rate?

  24. All of the following statements about convertible bonds are FALSE EXCEPT:

  25. An investor is in the 36% tax bracket and holds municipal bonds with an 8% yield-to-maturity. What is the equivalent taxable yield?

  26. What is the difference between a gilt edged bond and a regular bond?

  27. Which of the following BEST describes the requirements for advertisements of new municipal securities issues?

  28. How do companies like Moody's rate bonds?

  29. What is "hot money"?

  30. How do I use a barbell strategy?

  31. How do I use a premium put convertible?

  32. What is a wild-card play?

  33. What does it mean when a bond is selling at a premium? Is it a good investment?

  34. What is a convertible bond?

  35. Is there a limit to how many stocks and/or bonds an interested investor can buy?

  36. I lost my share certificate. Do I still own the stock?

  37. Why should investors pick less risky investments as they approach retirement?

  38. What's the difference between bills, notes and bonds?

  39. What does investment grade mean?

  40. Do convertible bonds have voting rights?

  41. How should I estimate my income from fixed sources like bonds, CDs and stocks?

  42. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed to be lower than ask prices?

  43. Does issuing preferred shares offer a tax advantage for corporations?

  44. What are "I Bonds" and how can I buy them?

  45. Are high-yield bonds better investments than low-yield bonds?

  46. What is accrued interest, and why do I have to pay it when I buy a bond?

  47. Why do low interest rates cause investors to shy away from the bond market?

  48. Who are the key players in the bond market?

  49. Why do commercial bills have higher yields than T-bills?

  50. Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?

  51. What is a stripped bond?

  52. Where does the stock come from when convertible bonds are converted to stock?

  53. What is the difference between a blend fund and a balanced fund?

  54. Where do investors tend to put their money in a bear market?

  55. What are the advantages and disadvantages of buying stocks instead of bonds?

  56. How many types of markets can an investor choose from?

  57. My certificate of deposit (CD) has just matured and I plan to contribute $10,000 of it to my current Roth IRA account. The person doing my taxes can't tell me why I can't make such a large contribution except for my low income - I am a disabled veteran on

  58. Is there such a thing as a foolproof stock-picking strategy?

  59. Are certificates of deposit a kind of bond?

  60. Where can I get bond market quotes?

  61. Can private corporations issue convertible bonds?

  62. I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?

  63. I have several CDs in my IRA with different maturities. Can I roll them over to another institution with a better rate as they mature?

  64. How does an investor make money on bonds?

  65. Can a bond have a negative yield?

  66. What's the difference between short-term investments in marketable securities and equity?

  67. A corporate bond I own has just been called by the issuer. How can a company legally take away my bond? How do these call provisions work?

  68. If the price of the bond falls, does that mean the company won't pay me the par value?

  69. What are 'death spiral' convertible bonds?

  70. What is the difference between municipal bonds and standard money market funds?

  71. I have discovered that a bond I am interested in has a sinking fund. What does this mean?

  72. Why do interest rates tend to have an inverse relationship with bond prices?

  73. What does it mean when a bond has a put option?

  74. Where do companies keep their cash?

  75. Do long-term bonds have a greater interest rate risk than short-term bonds?

  76. If I buy a $1,000 bond with a coupon of 10% and a maturity in 10 years, will I receive $100 each year regardless of what the yield is?

  77. Can a church issue a bond?

  78. Are eurodollars related to the currency called the euro?

  79. Why do companies issue debt and bonds? Can't they just borrow from the bank?

  80. Calculate the total return of the municipal bond described below.

  81. Is it possible to short sell a bond?

  82. What is the difference between a zero-coupon bond and a regular bond?

  83. If different bond markets use different day-count conventions, how do I know which one is used in any particular market?

  84. What is the difference between yield and return?

  85. How does a person gain from an investment?

  86. Why do longer term CDs pay a higher rate than the short-term CDs?

  87. Can a bond be traded over-the-counter?

  88. What is the difference between convertible and reverse convertible bonds?

  89. Why do companies issue 100-year bonds?

  90. How do central banks inject money into the economy?

  91. What is a basis point (BPS)?

  92. Why doesn't the price of a callable bond exceed its call price when interest rates are falling?

  93. What does "in street name" mean, and why are securities held this way?

  94. Are all bank accounts insured by the FDIC?

  95. Are long-term U.S. government bonds risk-free?

  96. What are the risks of investing in a bond?

  97. What constitutes an "intention to call a debt instrument before maturity" for tax purposes?

  98. Do noise traders have any long-term effect on stock prices?

  99. Where can I buy government bonds?

  100. What is the quickest, easiest and cheapest way to buy a bond?

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