Personal Finance and Money Stack Exchange
Personal Finance and Money Stack Exchange

Questions tagged [bonds]

Use this tag for questions that relate to debt instruments known as bonds. Generally, money is lent to governments or corporations that is paid back with interest.

In finance, a bond is a negotiable certificate that acknowledges the indebtedness of the bond issuer to the holder.

Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets.

Bond (finance) - From Wikipedia

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Why is this T-Mobile bond priced so low?

T-mobile Bond: https://markets.businessinsider.com/bonds/t-mobile_usa_incdl-notes_202020-26_regs-bond-2026-usu88868ag68?miRedirects=1 So the current price is 39.20. It has a coupon of 1.5%, and will mature in February 2026. I am fairly confident…
ronald christenkkson
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If I buy bonds near the maturity date, is it a short term zero risk investment?

Right now I'm studying how bonds work and from what I have studied, the crucial thing about bonds is the maturity date, where you are assured you'll get the principal if you sell at that time, and the interest coupons. Take a look at this specific…
Zaenille
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What is a bond fund?

This answer suggested to invest in a Bond Fund and stated that it has been working well for that person. What is a bond fund? What are it's pros and cons?
brainimus
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Why does interest rate go up when bond price goes down?

Why does interest rate go up when bond price goes down? Thank you very much!
Bruno
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Are there bond funds that hold all of their bonds to maturity?

I have a small sum of money that I would like to put to work for the next 5 years and then must be available again for my use. I want to take advantage of good muni rates and their tax advantages, but I also want to mitigate my exposure to default…
Pablitorun
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Understanding bond yields?

This is a screenshot from the top-level bond table on etrade.com, and I am having a hard time understanding it. I understand how bonds work, and what maturity/coupon/yield/etc are, but I'm not sure how to read the numbers here, because they don't…
temporary_user_name
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Bond Vigilantes: Prices, yields and incentives

I read on Wikipedia that a bond vigilante is "a bond market investor who protests monetary or fiscal policies they consider inflationary by selling bonds, thus increasing yields.". I tried reading the Wikipedia article on bond valuation, but I still…
Amelio Vazquez-Reina
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What's the difference between a bond priced at $100 and the same bond having a $1000 par value?

I understand that a bond priced at $100 (par) has a face value of $1000 (or a quantity of 1m). But I'm confused as to when these should be used in conversation. The nomenclature makes me assume there are two different scenarios in which they should…
Fueled By Coffee
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Am I always guaranteed to get my principal back if I purchase a bond?

If I buy a bond at par value (1000 $) and hold it to maturity, is it true that I will get my 1000 back (assuming the company does not default)? I don't get this part because what if: Company does not default but says I can only pay you 500, not…
Victor123
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Does buying and selling of bonds affect market price of bonds?

So I'm looking at this page: https://www.accountingtools.com/articles/how-to-calculate-the-issue-price-of-a-bond.html and I had a doubt. When lots of people start buying a stock for whatever reason (irrational reason for example), the stock price…
Ameet Sharma
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Bond at 94%. Is it a good idea to buy?

I have found this bond issued by Austrian company Do & Co: 3,125% DO & CO-Anleihe 14-21. As I understand, if I buy it now at 93.77 EUR, I will get 100 EUR on March 4, 2021. Is that true or is there some issue which I don't see? If it would be that…
askolotl
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What is the purpose of a Zero Coupon Bond?

Why will someone prefer to buy a zero coupon bond rather than a >0% coupon bond?
Geo
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Buying a bond before coupon?

This is probably going to sound like a dumb question but, say you have bonds with 10% coupon payments and face value we know is 1,000. If the bond is currently trading at 1,400 (a premium to the par value) why can you not just purchase the bond…
user90222
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Does the interest rate on a given US Treasury Bond change over time as the market rate changes?

This is obviously a very basic question: Does the interest rate change on a given US Treasury Bond as the market rate changes? For example: Let's say I buy a T-bill today, and the rate on the bill is 2%. Then, a year later, if the going rate is,…
Nick Hodges
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Why would you sell your bonds?

I've been reading about bonds lately just for the sake of educating myself about investing opportunities for the years to come. Something I don't understand is that nearly every article goes to pains to explain how the value of the bond rises and…
temporary_user_name
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