Bonds FAQs

  1. What does the yield curve actually predict?

  2. How do I calculate the expected return of my portfolio in Excel?

  3. How are municipal bonds taxed?

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

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

  6. How does an investor make money on bonds?

  7. Where can I buy government bonds?

  8. What does investment grade mean?

  9. Repurchase agreements versus reverse repurchase agreements

  10. What is a stripped bond?

  11. The difference between par and no par value stock

  12. Why companies issue debt and bonds (and don't just borrow from the bank)

  13. Reading the effect of fiscal deficits on an economy

  14. How do I calculate yield in Excel?

  15. What determines bond prices on the open market?

  16. How are savings bonds taxed?

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

  18. How a bond's face value differs from its price

  19. Can a bond have a negative yield?

  20. How can I create a yield curve in Excel?

  21. Knowing the difference between EE and I bonds

  22. The life of a company's stocks and bonds after chapter 11 bankruptcy

  23. Where can I get bond market quotes?

  24. The difference between fixed and current assets

  25. The difference between a bank guarantee and a bond

  26. How to calculate a bond's modified duration with Excel

  27. How do I calculate yield to maturity in Excel?

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

  29. What is the effective interest method of amortization?

  30. 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?

  31. How does a bond's coupon interest rate affect its price?

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

  33. What are the differences between a treasury bond and a treasury note and a treasury bill (T-bill)?

  34. What are some common examples of marketable securities?

  35. What is the difference between par value and face value?

  36. When is a bond's coupon rate and yield to maturity the same?

  37. What is the relationship between current yield and yield to maturity (YTM)?

  38. How can I calculate the carrying value of a bond?

  39. What is the difference between a collateralized debt obligation (CDO) and an asset backed security (ABS)?

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

  41. What's the difference between R-squared and correlation?

  42. What is the difference between the equity market and the fixed-income market?

  43. How do I calculate yield to maturity of a zero-coupon bond?

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

  45. How are Treasury bill interest rates determined?

  46. How are Treasury bills (T-bills) taxed?

  47. How hurdle rate and internal rate of return relate

  48. What is the difference between par value and market value?

  49. What are the differences between debt and equity markets?

  50. What causes a bond's price to rise?

  51. What is the difference between the bond market and the stock market?

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

  53. What is the difference between Macaulay duration and modified duration?

  54. How do I calculate a discount rate over time, using Excel?

  55. How long will it take for a bond to reach its face value?

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

  57. What is the difference between yield to maturity and the coupon rate?

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

  59. What is a basis point (BPS)?

  60. What is the difference between a debenture and a bond?

  61. What does a negative bond yield mean?

  62. Are money market funds considered cash?

  63. Are money market accounts considered checking or savings?

  64. Are money market dividends qualified?

  65. How safe are money market accounts?

  66. What is the difference between a collateralized mortgage obligation (CMO) and a collateralized bond obligation (CBO)?

  67. Do hedge funds invest in bonds?

  68. What is the relationship between the current yield and risk?

  69. Why would a corporation issue convertible bonds?

  70. How do I use the holding period return yield to evaluate my bond portfolio?

  71. How does the bond market react to changes in the Federal Funds Rate?

  72. What is a 'busted' convertible bond?

  73. Should investors focus more on the current yield or face value of a bond?

  74. How can I use the holding period return yield to determine whether or not I should sell my bond?

  75. What bond indexes follow the supply and demand for junk bonds?

  76. Why are the term structure of interest rates indicative of future interest rates?

  77. Who or what is backing municipal bonds?

  78. How do the returns on municipal bonds compare to those of other bonds?

  79. What does it signify if the term structure of an interest rate's curve is positive?

  80. What do cities do with the funds generated from municipal bonds?

  81. How is the standard error used in trading?

  82. Where can I find information about corporate bond issues?

  83. What are some examples of high yield bonds?

  84. What is the difference between term structure and a yield curve?

  85. Why are high yield bonds typically lower rated bonds?

  86. To what extent are utility stocks affected by changes in interest rates?

  87. Why is term structure theory of importance to economists?

  88. How safe are high yield bonds?

  89. Why has the market for high yield bonds grown so much?

  90. What does a climbing interest rate risk signify about the economy?

  91. Where can I find year-to-date (YTD) returns for benchmarks?

  92. Why would a company use a form of long-term debt to capitalize operations versus issuing equity?

  93. Under what circumstances would someone enter into a repurchase agreement?

  94. How do I evaluate a debt security?

  95. What are the key factors that will cause a bond to trade as a premium bond?

  96. Which economic factors impact treasury yields?

  97. What is the importance of calculating tax equivalent bond yield?

  98. What is the difference between market risk premium and equity risk premium?

  99. What is meant by off-the-run treasuries?

  100. What securities does the primary market deal with?

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