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What are fixed rate bonds?
Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.
What rates do US Saving Bonds offer?
The current interest rates of US Saving Bonds are 0.2 percent for Series EE Bonds. Series I Bonds have interest rate of 1.18 percent. Series HH Bonds have interest rate of 1.5 percent.
What is a negative interest rate bonds?
It is, essentially, a tax.
Who determines the rate of interest paid on a bond?
Bonds have a predetermined rate of interest called the stated or contract rate, which is established by the board of directors.
True or false A corporation that issues bonds at a discount will recognize interest expense at a rate which is greater than the market interest rate?
True
What does the effect of rate of interest on bonds?
it will increase the price of bonds
What are fixed rate bonds?
Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.
What rates do US Saving Bonds offer?
The current interest rates of US Saving Bonds are 0.2 percent for Series EE Bonds. Series I Bonds have interest rate of 1.18 percent. Series HH Bonds have interest rate of 1.5 percent.
What occurs when a bonds stated interest rate is less than the market interest rate?
Since the current market interest rate is higher, it is more attractive to a new investor then the bond with a lower interest rate. Thus, the price of the lower interest rate bond has to decline to be competitive with new bonds in the market.
Do bonds pay a variable interest rate monthly?
No, bonds pay a fixed amount of interest on a regular schedule.
What is a negative interest rate bonds?
It is, essentially, a tax.
What happens when issuing bonds payable when the market interest rate is less than the stated interest rate?
premium
Who determines the rate of interest paid on a bond?
Bonds have a predetermined rate of interest called the stated or contract rate, which is established by the board of directors.
What are the benefits of investing in municipal bonds versus collecting interest at a bank?
The rate of interest offered by Bonds is marginally more than the interest offered by Banks.
Why would a person invest in junk bonds-?
"Junk" bonds pay a higher interest rate than high-quality bonds, in order to compensate for the risk of default. junk bonds can pay very high interest rates (gradpoint)
Do fixed bonds have higher rates than bonds with fluctuating interest?
Yes, fixed bonds typically have higher interest rates compared to bonds with fluctuating interest rates. This is because fixed-rate bonds provide more stability and predictability in terms of returns for investors, whereas bonds with fluctuating interest rates, such as variable or floating rate bonds, have rates that can change based on market conditions. Investors are usually compensated for the uncertainty associated with fluctuating interest rates by receiving lower initial interest rates on these types of bonds.
Do you want a high or low interest rate in a savings bond?
If you are investing in a savings bond, you wish for it to have a high rate of interest. If you are selling savings bonds, you wish it to be at a low rate of interest.
