Finance

Bond prices are quoted in terms of bid and offer. The dealer spread is the difference between the bid (the price a bond trader pays for a bond) and the offer (the price she offers it for sale). Function Bond dealer…

The financial news often references the 10 year bond yield. The 10 year rate is widely followed to give investors an indication of the direction of longer term interest rates. Identification The 10 year bond refers…

Investors have a choice between two major asset classes in financial securities. Stock, or equity investing, is ownership in corporations, and stock investors participate in the gains and losses of these companies. Bonds are the debt of…

Corporate bonds are debt securities issued by companies to borrow money. Each bond has a par value which is usually $1,000 or $5,000. However, corporate bonds are traded like stocks and the actual value is determined by market forces.…

There are 2 main ways to invest in a company; stocks or bonds. Stocks represent ownership and bonds represent debt for the company. One common calculation for measuring the annual return on a bond is the bond equivalent yield (BEY). It…

The yield to maturity (YTM) calculation provides a way to compare bonds of different coupon rates and prices. YTM also gives an accurate representation of the actual return an investor will receive and hold the bond until maturity and the…

The United States Treasury issued Series E bonds from May 1941 through June 1980. Series EE bonds replaced Series E savings bonds. Series E Savings Bonds have face values of $25.00, $50.00, $75.00, $100, $200, $500, $1,000, $5,000 and…

Bonds pay investors a fixed interest rate every year until they mature or come due. When initially issued, bonds are sold in denominations of $1,000 or what is known as "par value." Bonds Traded on Secondary Market…

A bond is a kind of debt security, in which the party that sells the bond agrees to pay back the bond purchaser the initial investment, plus interest, at a later date. The bond's rate is the amount of interest the bond issuer agrees to pay.…

There are two major types of investments: stocks and bonds. Stocks represent an equity stake in a company, and bonds represent a debt and claim on the company's assets. The current market value of a bond is determined by the rate of…