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im doing a little bit research on financial accountng. Can anyone help on "bonds" and how to invest using it?

2006-07-03 15:50:44 · 4 answers · asked by Jeff_Estrada 1 in Business & Finance Investing

4 answers

The only bonds I have is saving bond. I purchase them through pay role deduction. You can buy direct http://www.savingsbonds.gov/
or http://www.publicdebt.treas.gov/sav/sav.htm

the I is paying 2.41% and EE is paying 3.70 good deal if you don't need the money for a long time.

2006-07-03 16:39:09 · answer #1 · answered by Grandpa Shark 7 · 0 0

A bond is a debt instrument. Corporate bonds, for example, are issued when a large company (for example GM) wants to bring out a new line of cars and they need a few hundred million to do it. They then go to an investment bank and ask the bank to "structure" the bond. Then it's thrown onto the market for anyone to buy them.
1 bond generally = $ 1,000 par value. They have a fixed term (i.e. 10,20,30 years) and pay a fixed "coupon". A coupon is the interest payment that you receive twice a year. There is also a "yield to maturity" which differs from the coupon. At the end of the term, you get your initial investment back.
That's the very simple version.
Bonds can get very complicated because they do not behave like other investments.
If a company goes under, a bond holder gets paid before a stock holder does and they're generally a safer investment than stocks. There is a wide variety of bonds on the market.

Have a look at "bondsonline.com" and read through some of their tutorials.

2006-07-03 23:41:33 · answer #2 · answered by scubalady01 5 · 0 0

The key word in your question is "little" bit research. You haven't looked and expect someone else to do your work for you.

You get an "F" in your research so far. There are hundreds, if not thousands of sites to help you. When have looked, and fail to understand something, then ask questions.

http://nevada.tomorrowsmoney.org/section.cfm/451

http://invest-faq.com/articles/index-bonds.html

http://www.allbusiness.com/articles/PersonalFinance/2454-2419-2424.html

http://econc10.bu.edu/Ec341_money/Papers/Bacarella.htm

http://www.investinginbonds.com/

2006-07-03 23:57:06 · answer #3 · answered by dredude52 6 · 0 0

I suggest you to stay away form bonds.

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2006-07-04 00:30:46 · answer #4 · answered by Anonymous · 0 0

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