Bond Dealer Spread
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...
Category
Finance
What Is a 10 Year Bond Yield?
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...
The Advantages of Debt vs. Stock
Investors have a choice between two major asset classes in financial securities. Stock, or equity investing, is ownership in corporations, and stock...
How to Find the Value of Corporate Bonds
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,...
How to Calculate the Bond Equivalent Yield
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...
How to Calculate YTM With Coupon Rate
The yield to maturity (YTM) calculation provides a way to compare bonds of different coupon rates and prices. YTM also gives an accurate...
How to Claim E Bonds
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...
What Makes Bond Yields Go Up & Down?
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...
Factors That Influence Bond Rates
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...
How to Find the Value of Premium Bonds
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...
What Are Collateralized Mortgage Obligations?
Securitization in a process in which income streams from various assets are pooled together, then sold off in slices to investors. Collateralized...
Interest Rate Vs. Yield
Most corporate bonds are issued with a fixed interest rate, payable to investors on an annual basis until maturity. Yield is a term that expresses...
How to Purchase Corporate Bonds Without a Broker
There are two ways to invest in a company: through stocks or bonds. Stocks represent equity or ownership and bonds represent a debt that must be...
How to Invest in 100% U.S. Treasury Bonds
U.S. Treasury bonds are referred to as "risk-free" investments for their unique safety. The U.S. government finances itself with debt sold to...
How to Purchase Premium Bonds
There are two main ways to invest in a company. You can invest via bonds or stocks. Bonds represent debt for the company, and the company pays the...