Bonds

How to Account for Bond Issues in GASB Statements

How to Account for Bond Issues in GASB Statements

Governments issue bonds to finance large capital projects such as the construction of schools or roads. A bond issue incurs administrative expenses, such as underwriter fees and ...

Accrued Income Calculation on Bonds

Accrued Income Calculation on Bonds

A smart investor keeps track of accrued income on various financial instruments, as it can have tax implications at the end of the year. If you prefer to offset taxes with ...

Relationship of Bond to Mortgage Rates

Relationship of Bond to Mortgage Rates

Bond yields and mortgage interest rates are closely related. In fact, mortgage rates typically move in tandem with bond market interest rates.The reason for this is because ...

Activities That Affect Tax-Exempt Bonds

Activities That Affect Tax-Exempt Bonds

As an old saying from the investment community goes: it's not what you earn - it's what you keep. This phrase is appropriate in regard to the yield on an investment after the ...

Advantages of the Bond Market

Advantages of the Bond Market

The biggest advantage of investing in the bond market is security. Bonds are generally a less risky option than investing in stocks. The difference boils down to an investment ...

The Advantages of Bond Ownership

The Advantages of Bond Ownership

When you purchase a bond, you lend money to an entity that borrows the funds for a fixed amount of time. This entity pays a fixed interest rate on the money you lent. U.S. savings ...

The Advantages of Bond Swapping

The Advantages of Bond Swapping

Investors swap out bonds by selling an existing bond, while at the same time using the proceeds of the sale to buy a different bond. This can be done for a variety of reasons, ...

The Advantages of Buying High Priced Bonds

The Advantages of Buying High Priced Bonds

High-priced bonds are investment bonds selling for more than the eventual maturity value. An investor buying a premium bond will pay a higher price than the face value of the ...

Advantages of Callable Bonds

Advantages of Callable Bonds

When a company issues bonds to raise capital, it often chooses "callable" bonds. A callable bond is a one that the company can redeem for its holders prematurely, before ...

The Advantages of Corporate Bonds vs. Treasury Bonds

The Advantages of Corporate Bonds vs. Treasury Bonds

When corporations and governments need money to finance projects and growth, they can turn to the public to borrow money. Bonds are borrowing contracts. Investors buy them at one ...

The Advantages & Disadvantages of Bonds Over Stock With Long-Term Financing

The Advantages & Disadvantages of Bonds Over Stock With Long-Term Financing

If you are looking to raise capital to run or expand your business, there are two primary ways of doing it. You can sell an ownership interest in your company to a partner or to ...

Advantages & Disadvantages of Buying Bonds

Advantages & Disadvantages of Buying Bonds

Companies, governments and government agencies issue bonds to raise money for necessary projects. When the bond matures, the issuer pays you back in full, and typically pays ...

Long-Term Loans Vs. Bonds

Long-Term Loans Vs. Bonds

When a company faces the need to take out financing, it can choose from several options in securing it. Among the two most popular are long-term loans from one or more investors ...

Advantages and Disadvantages of a Deferred Call Provision

Advantages and Disadvantages of a Deferred Call Provision

Sometimes, after a party has issued a bond, it may wish to "call" the bond back. When this happens, the bond issuer is actually retiring all or part of the bond before the bond's ...

Advantages & Disadvantages of Financing Corporate Bonds or Stocks

Advantages & Disadvantages of Financing Corporate Bonds or Stocks

There are both advantages and disadvantages to issuing corporate bonds or stocks for financing. Market and economic conditions may dictate which type of financing is most ...

How to Become a Corporate Bond Dealer

How to Become a Corporate Bond Dealer

Corporate bond dealers work for a particular kind of investment company called a "broker/dealer." These broker/dealer firms operate under the joint regulation of the Securities ...

Advantages & Disadvantages of Funding Money From Bond Issuance

Advantages & Disadvantages of Funding Money From Bond Issuance

Both companies and governments often choose to raise capital by issuing bonds. Bonds are essentially loans, although instead of being taken out from a single lender they are ...