Bond Investing

What is a Bond Quote?

A bond quote is what signals whether any given bond trades at a discount or a premium. This gives investors context for bond prices.

What is Bond Equivalent Yield?

Bond equivalent yield is a way of valuing discount bonds to determine annual percentage yield using specific benchmark tools.

What is a Bid Bond?

A bid bond is a type of surety bond that guarantees a payout pending certain stipulations, such as the case of large-scale construction projects.

What is a Bond Covenant?

A bond covenant spells out the most important stipulations of a bond that could lead to default if not adhered to properly.

What are Baby Bonds?

Baby bonds are specifically useful for small-to-midsized projects that might not otherwise garner a lot of attention from institutional investors.

What is a Coupon Rate?

The coupon rate is a static variable in the bond market. It’s the interest paid by the bond. Most bonds pay out their coupons on a semi-annual basis.

What are Treasury Inflation-Protected Securities (TIPS)?

Treasury Inflation-Protected Securities (TIPS) are issued by the U.S. Treasury where the principal value is adjusted according to the Consumer Price Index.

What are Treasury Bonds?

Treasury bonds are fixed-income securities issued by the U.S. Treasury with maturities ranging from 10 to 30 years and coupon payments.

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