Bonds Investing
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Getting a Handle on the Bond Market
An overview of how the bond market works: who sets bond prices, where to find a bond broker, and what a callable bond is.
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Why Bond Prices Go Up and Down
The factors that affect the price of a bond and how to protect yourself against bond fluctuations.
Bonds Investing Know-How
How Interest Rate Changes Affect the Price of Bonds
Whether the interest rate movements are caused by Federal Reserve actions, economic conditions or inflation fears, the impact on the bond investor is the same: Rising interest rates reduce existing bond values and falling interest rates increase existing bond values.
Seems simple enough.
But how will your bond investments be affected by changes in interest rates?
Since bonds differ by maturity, coupon rate, type of issuer and other factors, figuring out how your bond or bond portfolio will be affected by interest rate changes can be complex. Fortunately, you don't need a math degree to understand the basic concepts. Here are some simple guidelines for...
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Munis vs. Taxables: How to Determine the Taxable Equivalent Yield
With yields on the safest fixed-income investments still very low, one way to boost your bottom line is to shield that income from further erosion.
Interest income that is sheltered from federal taxation—and possibly state and local taxes as well—has always been the main attraction of municipal bonds.
However, tax-advantaged bonds generally offer a lower coupon rate than taxable bonds of similar maturity, such as government bonds.
...Bonds Investing Articles
- I Savings Bonds
- Where Credit Is Due: A Look at the Ratings
- How to Buy Individual Bonds: A Fixed-Income Toolkit
- Offbeat Offerings: Mortgage-Backed Securities
- Offbeat Offerings: Credit Union CDs
- Laddered Bond Portfolios
- Convertible Bonds
