What is bond & give advanyages and disadvantages in investing in bond?
107049
Government bonds come in several types.  In the most common type, series EE savings bonds, you pay part of what the bond is eventually worth.  It is then going to accrue interest until it reaches maturity.\n\nAdvantages to bonds include stability and guaranteed gain (you'll never lose money on a bond.)\n\nDisadvantages are that you are very much locked into leaving it alone if you want to keep the interest accruing - once you cash a bond, it's gone - you cannot partially cash a bond.  Also, many people determine that the growth is too slow to be a sole investment strategy, and use bonds as just a part of their investment plan.\n\nIf you are considering making an investment for a young child, ie 10 years old or younger, bonds are a great way to get "more than your money's worth" so to speak.  As an investment for an adult, however, you need to look very closely at your goals and your timetable.
34857
A bond, in a nutshell, is a loan you make the a corporation or government (for example a War Bond).  They are purchased through brokers, but some organizations, such as the government, allow people to buy them directly.  When you loan money to the organization, they keep it for a set period of time to improve their business (or in the government's case, buy war machines, repair schools and so on).  That means that during this time, you don't have the money to spend on yourself.  To pay you back for the lost opportunities, your opportunity cost, the organization pays you back with interest at the end of the bond (some bonds pay interest during the life too, but thats too complicated for a quick answer). You do gain money on interest, but depending on your investment style and risk aversion, it may or may not be enough to cover your opportunity cost.  If you are interested in buying government bonds, contact a government office (ususally the post office can point you in the right direction.  Corporate bonds are typically handled through brokers.
1159762
What are you talking about.  I have I bonds.  They haven't destroyed my trust.  They're not meant for you to make a lot of money.  They are a government investment.
5468
You can buy them through many investment firms: Schwab, Vanguard, eTrade, etc.  There are many bonds that their rates/mature-period vary somewhat.  Some are also tax-free, others are not.\n\nYou could go to vanguard.com to do some (free) research.  Or you could visit Schwab office, and someone would be happy to go over that with you.
152867
It depends on the issue date.  Check the links below.  One is a savings bond calculator and the other is the government website for bonds.
887830
Disadvantage\n\n1)It looks bad to customers, they think ur in problems thats why you have to factor debts\n2)Charges\n3)\n\nAdvantages\n\n1)Reduced risk of bad debts\n2)Dont have to have debt collection staff\n3)Easier to plan cash flow\n4)Protection against currency movements\n\n\nSorry cant think of any more disadvantages
384522
The way bonds work, you only get the face value at the end of the term, if you are to sell it early, then you have to accept market price which may be more or less than $500. The market price depends on the coupon rate, which is how much money your bond is getting you, for example, if you get $50 a year, that is a %10 coupon rate, VS, the market rate, which is the yield being traded in the market. So if you your coupon rate is higher than the market you can sell it over $500 if less, than  opposite, but if it was issued last March, very little probably changed and you would probably get from $490-510 for selling it.
294363
The answer is not simple, it depends on when it was issued.  There is a website for information on savings bonds, it is www.savingsbonds.gov.  I went through and found the following link which you should be able to research and find the information you are looking for.\n\nhttp://www.publicdebt.treas.gov/sav/savinvst.htm
762453
Premium bonds yield  3.75 % on the average, but are tax free and therefore equivalent to 4.69% gross. Bank deposits now pay about 5.2% gross\n\nFurthermore a DA is certain, while PB are a gamble, unless you own a very large amount. \n\nIt is a fundamental principle of investing that the riskier the investment the greater should be the return. Here the opposite is the case. Therefore the DA wins hands down.\n(But I would still buy one or two PB for the hope they offer of something big)
95363
Capital Income Builder is a decent fund. You certainly wouldn't want it to be the only holding in your portfolio. Depending on the size of the portfolio you can do a couple things. If substantial, you will want to ladder a bond portfolio ( to mitigate the effects of rising rates while providing income), use municipals if the account is non-qualified. If your assets are not that large, bond funds will do.\n\nSupplement the bond holdings with some core equity mutual funds like Capital Income Builder, or even select ETF's.\n\nDepending on your age and risk tolerance, an immediate annuity is another option.\n\nSpeak with a financial planner in your area. You can ask freinds and relatives if they know a good planner and/or use the Planner Search feaure on the Financial Planning Association's website, www.fpanet.org\n\nGood Luck
475784
Risks of Investing in Bonds\nAll investments offer a balance between risk and potential return. The risk is the chance that you will lose some or all the money you invest. The return is the money you stand to make on the investment.\n\nThe balance between risk and return varies by the type of investment, the entity that issues it, the state of the economy and the cycle of the securities markets. As a general rule, to earn the higher returns, you have to take greater risk. Conversely, the least risky investments also have the lowest returns.\n\nThe bond market is no exception to this rule. Bonds in general are considered less risky than stocks for several reasons:\n\nBonds carry the promise of their issuer to return the face value of the security to the holder at maturity; stocks have no such promise from their issuer. \nMost bonds pay investors a fixed rate of interest income that is also backed by a promise from the issuer. Stocks sometimes pay dividends, but their issuer has no obligation to make these payments to shareholders. \nHistorically the bond market has been less vulnerable to price swings or volatility than the stock market. \nThe average returns from bond investments have also been historically lower, if more stable, than average stock market returns.\n\nHigher Risks=Higher Yields\nA specific bond’s risk level is reflected in its yield, another name for return on a bond investment. “Current” yield is a function of the bond’s:\n\nCoupon rate: the annual interest rate the issuer promises to pay the investor, stated as a percentage of the bond’s face value or “par,” which is the amount the investor can expect to have returned on the bond’s maturity date. \nCurrent price, which may be a premium (more than) or discount (less than) in relation to the bond’s face or par value. \nYield-to-maturity reflects the relationship between the total coupon interest payments remaining between now and maturity, and the difference between today’s market value (price) and par value. Yield-to-call is the same calculation based on the total coupon interest payments remaining between now and the first call date (rather than the maturity date) as well as the difference between today’s market value (price) and the call price.\n\nThe higher the risk in a given bond, the higher its yield needs to be to compensate the investor for taking the risk. When the market perceives the yield on a bond to be too low, its price will fall to bring the yield in line with market expectations or prevailing interest rates.\n\nIt’s All Relative to “Riskless” Treasury Yields\nBonds issued by the U.S. Treasury are backed by the full faith and credit of the U.S. government and therefore considered to have no credit risk. The market for U.S. Treasury securities is also the most liquid in the world, meaning there are always investors willing to buy. U.S. Treasury yields will almost always be lower than other bonds with comparable maturities because they have the fewest risks.\n\nRelative yields—which may be discussed in terms of “spread” or difference in yield between a given bond and a “riskless” U.S. Treasury security with comparable maturity—vary with the type of bond, maturity date, the issuer and the economic cycle.\n\nCallable bonds are riskier than non-callable bonds, for example, and therefore offer a higher yield, particularly if the call date is soon and interest rates have declined since the bond was issued, making it more likely to be called.\n\nShort-term bonds with maturities of three years or less will usually have lower yields than long-term bonds with maturities of 10 years or more, which are more susceptible to interest rate risk. All bonds have more risk when interest rates are rising, but those with the lowest coupons stand to lose the most value.\n\nUnderstand the Risks Before You Invest\nBonds have a role to play in virtually every investor’s portfolio (See the article on Asset Allocation for more inf
802032
I assume your refering to a surety bond(there is no reference to an 'obligation' bond) which is a low/no risk fixed income investment.
373239
Dpends upon what kind of bond you are talking about.  If it is a savings bond,  your local bank can assist you.
344339
The first poster is correct. Bonds (or Treasury Bills, T-Bills) are the safest investment. They are considered risk free, and they're currently paying in the high 4-5% range.\n\nHowever, you can get a better return for just a slight increase in risk... you don't need to be entirely conservative.
707425
basically there are 4 factors that determine the value of a bond.\n1.  Its credit rating.  If the credit rating changes downward the price of the bond will drop acordingly as Ford and GM bond holders discovered last year.  Bonds that were selling about about face value suddendly dropped to 75% of face. \n\n2.  Length of maturity.  As a bond approches maturity, its value also approches face value.\n\n3.  Length of time to call.  A bond with an unusually high coupon rate that is selling at a premium will drop towards par value or the call value as it approaches the call date.\n\n4.  Last but most importantly the coupon value as it relates to current interest rates. A bond with a 6% coupon given that current interest rates are at about 5% will sell at a little less than $1200 depending on time to call or maturity, a 20% premium.  Conversely, a bond with a 4% coupon given that current nterest rates are at about 5% will sell at a little more than $800 depending on time to call or maturity, a 20% discount.
645992
Structurally speaking, both bonds and debentures seem the same. But if you look closer, you'll find out that generally, while debentures are secured against assets of the company, bonds are not. So, basically debentures are secured obligations while bonds are unsecured.
809503
The yields on government bnds fluctuate almost on a daily basis and especially during monthly interest rate revisions. Therefore, the same bond bought at different times would yield a different return. \n\nHope this helps.\n\n\nhttp://www.mastersoequity.com\n\n\n.