Bond Investing

What is a Bond Valuation?

A bond valuation involves looking at two core figures: the present value of the coupon payment and the present value of the par value.

What Is a Bond Ladder?

A bond ladder is a supportive strategy in which investors layer bonds with different maturity rates into a single portfolio.

What are Bond Funds?

Bond Funds have two primary goals: to generate passive income and to hedge against stock market volatility.

How do Bond Ratings Work to Determine Credit Worthiness of a Bond?

Bond ratings work to determine the credit worthiness of a bond. They’re a signal to prospective investors for reliability.

What are Bond Futures?

Bond futures are an agreement between two parties to transact securities, in this case bonds, at some time in the future.

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.