10 Facts about Bonds
If you want to know one of the important aspects in the economy, you have to read facts about bonds. Many people who do not know anything about the economic world think that bond is a strange thing to talk about. They believe that it is a complex thing to understand. Actually it is not true at all. If you are interested to know more about bonds, check the following post below:
Facts about Bonds 1: what are bonds?
Bonds actually are not as complicated as you might think before. They are just an IOU made in the legal document to know the pay back date, terms of condition as well as the interest rate.
Facts about Bonds 2: the other names of bonds
Bonds are often called as the credit securities, debt instrument or even fixed income securities.
Facts about Bonds 3: safety
Bonds are very popular to issue because of the safety reputation. But the risk still exists. The liquidity risk as well as the inflation rate is the common things that make the bond investors worry.
Facts about Bonds 4: the interest rate and bonds
The interest rate and bonds are moving in different direction. The bonds fall if the interest rate rises or the other way around.
Facts about Bonds 5: are bonds complicated?
Actually bonds are more complicated if you compare them with stocks. The public corporations usually serve the customers with different kinds of stocks. On the other hand, the federal government, corporations, public authorities, states, cities, government sponsored agencies sell the bonds.
Facts about Bonds 6: the varieties of bonds
Bonds are available in various kinds too. You can pick the bonds which can take 30 years to mature or you can pick the short term bonds which only take short time to mature.
Facts about Bonds 7: the bonds issued by United States
There are three kinds of bonds issued in United States. You can pick the bonds issued by the agencies and federal government. It is a very safe debt. The second bonds are issued by the states, cities and corporations. The third bonds are issued by states, cities and corporations, but they are risky. Check bartering facts here.
Facts about Bonds 8: the grades issues
The grades issues are the main concern of the people when they are interested to buy bonds. The credit rating gives you a clue about the safety of bonds. Moody’s, Standard & Poor’s and Fitch Ratings are some of the agencies which issue the credit rating in Wall Street companies.
Facts about Bonds 9: the municipal bonds
The municipal bonds issued by the states and cities are often used for paying highways or even schools. Get facts about bank here.
Facts about Bonds 10: a yield curve
A yield curve is the financial concept that the investors should understand before they buy the bonds.
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