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Showing posts from February, 2022

Let’s Talk About Different Types of Bonds

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  What are bonds?   In basic terms, a bond is a loan from an investor to a borrower such as a company or government. The borrower uses the money to fund its operations, and the investor receives interest on the investment. The market value of a bond can change over time.   Types of bond loans   On the basis of interest rates:   1.  Fixed rate bonds   A fixed rate bond is a bond that pays the same level of interest over its entire term.   An investor who wants to earn a guaranteed interest rate for a specified term could purchase a fixed rate bond in the form of:   1. Treasury 2. Corporate bond 3. Municipal bond 4. Certificate of deposit (CD)   If market interest rates rise or the financial health of the issuer deteriorates, investors may demand a greater yield and the price of the bond will generally fall.   2.  Floating bond rates   A floating-rate note (FRN) is a debt instrument with a variable interest rate. The interest rate for an FRN is tied to a benchmark rate.   Benchmarks incl

What to Look for While Investing in Instant Loan Bonds?

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Bond market may seem unfamiliar even to the most experienced investors. Many investors make only passing ventures into bonds because they are confused by the apparent complexity of the market and the terminology. In reality, bonds are very simple debt instruments.   To ace the game of instant loan bonds and to crack the best ever deal, you need to understand the little things that must be considered while buying these bonds.   These practices will ensure you that you ill never regret buying these bonds and will your desired purpose will be served by the end of the day. You must be curious to know these tactics to master the game of bonds.     So, here is a list of all vital considerations you must take care of while buying bonds.   Things to Look for While Investing in Instant Loan Bonds   1.  Pay keen attention towards the basics of the bonds   When it comes to the basics of the bonds, it includes :   Maturity time of the bonds   Maturity time plays the most significant role in defini