What determines the yield of my Municipal Bond Fund?
955899
Bryan gave you a good but not complete answer.  He neglected one aspect of the determination of the yield on the fund.  That is the expenses of the fund.  Normally, they run about 1.5% annually, but some funds are higher and some are lower.  Those expense impact your yield. \n\nI am a little puzzled by your comment of the fund being tax deferred.  Muniple bonds are not taxed at all by the federal government and neither by the state government to the extent that they contain bonds from the state of New York.
218795
Cannot be answered unless you specify the redemption value of the bond and the time to maturity.
178061
US Treasury bond is calculated using a compound interest method.  This means that the interest that you receive on your US Treasury bond for any given year is the stated interest rate multiplied by the sum of the principal and the cumulative interest that you have earned but not received in the preceding years.
202232
Yield is the actual earning that you get from an investment or deposit or even a loan.Banks give you yield when you put money in their plans and they get yield when you loan money from them.It is expressed in percentage and is usually termed APY.
108996
This is not enough information. \n\nYou need to supply a salvage value at the end of year 6, or an income stream that goes on forever.\n\nAlso you need to supply the interest rate if you want to know when it breaks even. The other option is to just ask for the IRR, internal rate of return. (this is what the bank would be paying if you opened an account and deposited and took out money as you described)\n\nThe internal rate of return for the project you listed is 0.61% assuming the sixth year payment is the return value and there is then nothing left. If thats the case you should NOT embark on the project as the riskless rate of return (govt bond) is much higher.\n\nIf alternatively you still have the $1,000,000 at the end then the return is 16.55%. Now I would say it has potential as long as the numbers described are not the best case scenarios. If the thing appreciates then even better. It drops to 10% IRR if the end salvage value is about $448,000 just to show where you might consider the cuttoff to be if 10% was a good return for you.
785885
It somewhat depends on the particular bond.  EE and H and I bonds are not taxabable until they are redeemed.  All others are taxable during the year when the interest is paid.  The interest received is not taxable by state and local governments.  It is taxable by the U S government.  TIPs and Strips have tax consequenses that make them undesirable for normal taxable accounts.  Strips do not pay interest.  They are sold at a discount to their face value.  But the imputed interest is taxed even though it is not received. (Isn't the government just great?).  TIPs do not pay the inflation adjustment until the bonds are redeemed, but the inflation adjustment is taxed annually even though it is not paid.  Cute.
246852
It doesn't matter on a free to purchase investment such as a bond bond, but it can matter on stocks.\nIf you put down $100 once a week to purchase stock at a $15 buy fee, that a loss of 15% purchase power each week.  If you put in $1,000 every 10 weeks, you loose 1.5% purchase power, but the volitility on stocks can move that much in one or two days.  You might miss on the run up if you wait, but you take a big loss if your buy fee eats up a good percentage of what you want to put in.
553933
It a differences between the yield and(what you make and) in it some may be 4.5 percent or 4.0 percent and how much you paid to have this account.
297576
i think its the money that u will have when you sell your bond,and you can use it for purchasing a house.for more informations you can use this site: http://money.cnn.com/pf/101/lessons/7/
993051
It's hard to say hypothetically, but often when a local government needs to build something, they use cash-on-hand as much as they can and borrow what they need to to make up the difference.  The cash usually comes from a budget surplus. So in your example, they might use $25 million from that year's budget surplus and borrow the other $75 million in the bind market.
164956
a treasury bond is issued by the government as a method of raising capital to service government debt. when you buy a treasury bond you effectively become a creditor to the government. the yield of this bond (or note) is the annual percentage of the lent amount you receive in interest payments as the creditor.\n\nvarious factors affect the yield of this note, such as whether or not the country issuing it is prone to political and/or economic volatility, investor confidence in the local currency and speculation about future economic development. domestic interest rates also affect the yield of a treasury bond.\n\nas a general rule (as with all investment) the higher the risk or level of speculation, the higher the yield. for example, a recently issued 30 year (this is the timeframe in which the bond will continue to compound or pay its annuity) US treasury bond has a projected yield of 4.5% per year. in contrast, a Brazilian treasury bond has a yield of 15.4% because of mentioned risks.\n\ntreasury bonds can be bought and sold on the bond market, so an investor does not have to hold on to them for the entire length of their maturity.\n\nbecause they are generally "safe" investments (as they are backed by the federal bank of an individual sovereign state) bonds become popular when speculative investor confidence is low. that is to say, when equities (or stocks) are down, bonds are up. and vice versa.
966356
1) government bonds are initially issued at a fixed price but then the price fluctuates with market conditions.  If you hold the bonds until maturity and the government does not default you will receive par value of the bonds.  Sometimes bonds are called ahead of maturity date, municiple bonds frequently are called when interest rates fall.  Yes it is possible to loose money, especially if the government defaults. Bonds can be purchased from stock brokers.  U S government bonds can be purchased directly from the U S government. \n\n2) you can purchase mutual funds directly from the mutual fund companies.  Most if not all have internet sites where you can download the appropriate forms.  Many can be purchased also through stock brokers.  Some are sold like stocks.  They are called closed end funds.  Index funds are also sold like stocks. They all have symbols.  PENNX is the symbol for Pennsyvania Fund. \n\n3)  There are several ways to purchase precious metals.  a) directly from a company that sells the metals b) through futures contracts which is a contract to purchase the metal at a future date. c) gold can be purchased like a stock through the index fund GLD.  d) indirectly through stock in a mining company. \n\nCommodities can be traded through futures contracts.  beef, pork, corn, wheat, soybeans, coffee, sugar, among others.
238940
Follow the 10 year treasury bond.  If interest rates in the US go up, then this attracts $$$ to dollar denominated investments which makes the $$$ stronger against other currencies.  \n\nIn the last week, it has moved from 4.65% to 4.85%.  The trend is for higher rates, but anything can happen in a week.  You can follow the bonds on yahoo finance, symbol ^TNX.  When you get a quote, you move the decimal point one place to the left and you have the yield.\n\nGood luck!!
198236
Hi..\n\nRish free rate of return is equal to secured return i.e. return on Government bonds / securities. \n\nIn all the general business working - interest rate on govt. bonds / securities are taken as rate of risk free return.
677046
"In finance, coupons are 'attached' to bonds, either physically (as with old bonds) or electronically. Each coupon represents a predetermined payment promised to the bond-holder in return for his or her loan of money to the bond-issuer. The bond-holder is typically not the original lender, but receives this payment for effectively lending the money. The coupon rate (the amount promised per dollar of the face value of the bond) helps determine the interest rate or yield on the bond." (see first link)\nI hope this makes sense to you, hon, financial instruments are something I don't thoroughly understand. I also included the wiki entry for Floating rate note and a page from personalfn.com in case that helps.
549854
the rate is the stated rate such as 4%.  The yield is higher rate because of compounding.  Let's say $100 @ 4% per year is $4.00 income. The same 4% rate compounded monthly is higher because the intrest income is added at the end of each month. Let's say $100 @ 4% monthly is 1st month is $100 x 4% = $4.00 / 12 months is $100.33 at the end of the first month so month 2 is $100.33 x 4% = / 12 months is $100.66. and so on...  So yield is interest on top of interest.
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.