Finance

All bonds have what is known as a "par value," which is normally $1,000 per bond. A premium bond is simply a bond that is priced above par value. For example, if the bond you want to buy has a par value of $1,000 but costs you $1,100 to…

Whether you are looking for current income, safety or a combination of both, bonds and bond mutual funds can be a good investment. Bond mutual funds can also be a good balance against the risk of stock market investing and many investors…

U.S. savings bonds, such as the series EE, can be excellent investments as well as gifts. Many parents and grandparents purchase series EE savings bonds for their children and grandchildren on special occasions. Those parents and…

The U.S. government issues many different types of bonds. Unlike stocks and corporate bonds, Treasury bonds and savings bonds are backed by the full faith, credit and taxing power of the U.S. government, making them the closest thing to a…

Insurance companies issue bond insurance contracts to protect investors from the consequences of default. These companies are typically called monoline insurers. The bond insurance contract pays out a claim if the bond enters default, which…

There are several ways that a corporation attempts to raise funds to offset operating expenses. One way an investor can get in on the action is through bonds. A bond is a form of loan to the corporation in which the investor expects to get…

Series I savings bonds are a popular alternative to the traditional Series EE bond. Like EE bonds, I bonds are available in paper form at banks and other financial institutions or as "electronic bonds" online. What makes I bonds distinctive…

A yield curve is a plotted graph consisting of interest rates, all taken at the same time, on selected maturities of bonds of a similar credit quality, usually Treasury bonds. The standard Treasury yield curve plots the yield to maturity…

Certificates of deposit (CDs) and government bonds are two types of low-risk investment vehicles. CDs are defined and financed by their relationship to a private bank. Government bonds are issued by state institutions, funded with public…

Bonds issued by the U.S. Treasury are considered to be among the safest investments in the world because the United States is unlikely to default on its timely payments of interest and principal. Significance The…