Bond Investing

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?

Here’s a closer look at baby bonds and why they’re such a popular investment for fixed-income investors seeking bond exposure. 

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.

What is a Maturity Date?

A maturity date is the date on which the bond contract ends. On that date the borrower or issuer must pay the bondholder the face value of the bond.

What is Bond Face Value?

The bond face value is the amount of money the bond will be worth at maturity. This is an important detail for investors to understand.