Steven Nickolas is a freelance writer and has 10+ years of experience working as a consultant to retail and institutional investors. Amy is an ACA and the CEO and founder of OnPoint Learning, a ...
When a government or corporation issues a bond, it does so with a specific par value and interest rate. Once in the market, those values don’t change; however, the value of a bond can change depending ...
The accrued market discount is the expected gain to be earned on a discount bond by holding it up until maturity, whereupon it should rise to its face value. This gives investors potential gains.
Most investors reach for a broad, market-value-weighted bond fund to fill the bond portion of their portfolio. While no weighting approach is perfect, market-value weighting often provides the most ...
Government bonds are debt securities issued by a government to support its spending and obligations. Investors who buy these bonds are, in essence, lending money to the government. In return, the ...
The carrying value of a bond refers to its face value, plus any unamortized premiums or minus any unamortized discounts. We can quickly calculate a bond's carrying value with only a few pieces of ...
Series EE savings bonds stop earning interest after 30 years. You can cash in a Series EE bond after one year. The method for checking your bond’s value depends on if it is electronic or paper. When ...
If you’re an equity investor, you buy stocks at the current market price and hope they appreciate. For debt investors, it’s the opposite concept. Investors buy bonds based on their face value: the ...
Carrying value equals bond face value plus unamortized premiums or minus discounts. Calculate it using face, current term, and premium or discount per year. Investors use carrying value to assess bond ...
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