q Bonds 101 Starter Guide - Wall Street Survivor

Bonds 101 Starter Guide

Bonds are a relatively safe and conservative investment that provide a predictable stream of stable income.


What Is A Bond? How Do Bonds Work?

Bonds are seldom as sexy as those wild-ride shares, but they’re reliable money-makers. Learn about bonds and how to match them to your personal investing style.

How To Buy Bonds?

Bonds may be lower risk, but they are not risk-free. You should research bonds just as you would stocks before purchasing them. Learn how and where to buy bonds.

The Bond Market

The bond market is where participants can issue new debt or buy and sell debt securities to provide long-term funding for public and private expenditures

Bond Index

A bond index is a method of measuring the value of a section of the bond market. Investors use it to describe the market and compare the return on investments

Bond Quotes

A bond quote is the price at which a bond is trading. It’s expressed as a percentage of par value. A bond quote above 100 means the bond is trading above par.

Bond Rates, Yields And Pricing

Many new investors are surprised to learn that a bond’s price fluctuates and changes on a daily basis, just like that of any other publicly-traded security.

Bond Calculators

A bond calculator measures the present value of a bond’s cash flow (its future interest payments), and par value (the bond’s value upon maturity).

Bond Premiums

A bond selling at premium is trading above its par value. It’s considered premium when it offers a coupon rate higher than its prevailing interest rates

Bond Ratings

Think of a bond rating as a school report card. Companies have ranking for bonds based on the likelihood of the bond defaulting on its invested amount

Bond Valuation

Bond valuation is a technique for determining the fair price of a bond. The theoretical fair value is the present value of the stream of cash flows it’s expected to generate.

Bond Insurance

Bond insurance is when an insurance company guarantees scheduled payments of interest and principal on a bond in the event of a payment default by the issuer

Savings Bonds

Savings bonds, one of the safest investments, are debt securities issued by the U.S. Department of the Treasury to pay for the government’s borrowing needs.

Municipal Bonds

Municipal bonds are issued by states, cities, or other local governments to raise money to fund services or infrastructure projects (road repair, sewers, purchasing land, etc.).

Corporate Bonds

Corporate bonds are a major source of capital for many businesses along with equity and bank loans/lines of credit. They can be quite secure or sometimes risky

Treasury Bonds

There’s no such thing as a risk-free investment, but if there was it’d be treasury bonds. Interest is paid semi-annually and taxed only at the federal level.

Bond Funds

A bond fund invests in bonds or debt securities. It pays dividends including interest on the fund’s underlying securities plus realized capital appreciation.

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