Blue Chip Kids by David W. Bianchi

Author:David W. Bianchi
Language: eng
Format: epub
ISBN: 9781119058557
Publisher: Wiley
Published: 2015-02-22T00:00:00+00:00

A high-yield bond is a bond that pays a very high interest rate. They are sometimes known as junk bonds. Seriously, they are called junk bonds. But don't let the name fool you. Just because they are called junk bonds doesn't mean they are garbage and you should avoid them. If they are issued by good companies and you do your homework and are satisfied that the company will pay the interest and redeem the bond when it is due, then junk bonds can be good investments.

U.S. Treasury Notes and Bonds

Every week the U.S. government sells Treasury notes and Treasury bonds at an auction to raise money to pay for the ongoing operations of our government.

But what is the difference between a Treasury note and a Treasury bond? Answer: duration. Treasury notes have a maturity of 2 to 10 years from the date of issuance. Treasury bonds have a maturity of more than 10 years up to 30 years from date of issuance.

If you buy a two-year $1,000 Treasury note with a 3 percent interest rate, you are giving the U.S. Treasury Department $1,000, and the government is agreeing to pay you back the $1,000 at the end of two years together with 3 percent interest for each of the two years that you owned the note. In this example, you would receive a total of $60 in interest:

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.