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SeekingAlpha  27 min ago  Comment 
The Economic Times  2 hrs ago  Comment 
The benchmark 10-year bond yield fell as much as 6 basis points to its lowest in nearly seven years at 7.11 per cent, while the present benchmark bond 2026 yield hit its life-low.
MarketWatch  3 hrs ago  Comment 
Interest rates on U.K. government debt dropped to a fresh all-time low on Tuesday, as investors continued to digest the Bank of England's aggressive stimulus package unveiled last week. The yield on 10-year Gilts fell 9 basis points to 0.591%,...
The Economic Times  5 hrs ago  Comment 
Bond yields and prices move in the opposite direction. The benchmark was yielding at 7.13%, three basis points less than the level seen in early trades before policy announcement.
Financial Times  10 hrs ago  Comment 
Emerging markets benefit from negative rates in hunt for yield
Wall Street Journal  12 hrs ago  Comment 
The Mexican government sold $2.76 billion in long-term bonds Monday and will use the money to prepay bonds coming due in January 2017, the Finance Ministry said.
The Economic Times  Aug 8  Comment 
The minimum investment amount in these bonds is just 1 bond or Rs 3,000-3,200, enabling larger number of investor sto participate.
MarketWatch  Aug 8  Comment 
U.S. Treasury prices were virtually unchanged on Monday, with not much action in a slow August week with many traders on vacation
Mondo Visione  Aug 8  Comment 
Warsaw Stock Exchange Monthly Statistics for July 2016 is now available: For Main Market Statistics click here For NewConnect Alternative Market Statistics click here For Catalyst Bond Market statistics click here




 
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A bond is a type of debt. It's a loan from an investor to an institution, and in exchange the investor collects a predetermined interest rate. When a company needs capital to expand its business, it issues bonds to the public. Investors buy them with the understanding that they will collect the original principal plus interest when the bond matures at a set date. Federal, state, and municipal governments issue bonds for a similar purpose, to raise money for projects and public programs.


Types of Bonds

Bonds or Stocks?

Making the choice between stocks and bonds can be complex. In general, though, the key consideration is your own planning horizon.

Bonds are, in general, more predictable than stocks, and (on average and in general) give you lower returns. If you believe you'll need predictable access to money over, say, a 20-year period, you may be better off with bonds. For example, if you want to put aside a specific amount of money for a grandchild, expecting that money to be available for college in eighteen years, and not expecting to have other capital available. Insurance companies invest heavily in bonds for just this reason: it matches predictable liabilities (future insurance claims) against predictable cash flows (principal and interest).

Some bonds have tax advantages; for example, municipal bonds are typically exempt from state taxes in the state that issued them, as well as federal taxes. This can make them more attractive, though often you will find that the market has arbitraged away the difference, and that corporate (that is, taxable) bonds carry a higher gross yield -- and the same net yield after taxes. Although many investors invest in munis for just this reason -- they "don't like the taxman" -- they may not be making the optimum investment choice.

Bonds are not riskless, however. They carry credit risk ("will I get my money back?"), prepayment risk, liquidity risk and interest-rate risk. Many bonds give the bond issuer the right to repay the bond early -- which happens more often when rates are low, in other words, just when you don't want your money back. This is prepayment risk. Liquidity risk is the risk that you won't find a good price for your bond when you want to sell it -- because there are so many more bond issuers than stock issuers, and because bonds are not exchange-traded, there may not be a willing buyer. Interest-rate risk is the opposite of prepayment risk: when rates go up, the value of your bond will drop (it drops more, the further away it is from maturity). If your circumstances change and you need to sell the bond before maturity, you can lose capital that you would otherwise receive, if you held the bond to maturity.

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A how to on investing in bonds

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