... issue
with a sinking fund matures in 8 years, but the sink-
ing fund is used to retire $250,000 of the issue in 5
years, $250,000 in 6 years, and another $250,000 in
7 years. You don’t know which bonds ... who are interested in selling. Most firms will
do this, but not all. It is known as crossing bonds. The
bonds are sold directly from one investor to another. The
investment fir...
... discussed in Chapter 4, mortgage-backed
bonds (MBSs) possess negative convexity. As interest rates
drop and other bond prices are increasing, these bonds in-
crease in value at a slower rate. As interest ... The nuance involved in predicting future in-
terest rates comes from intuiting which indicators will
exert the strongest in uence on the markets, which are
best correlated...
... Hill
Getting Started in 40 1(k) Investing by Paul Katzeff
Getting Started in Security Analysis by Peter J. Klein
Getting Started in Global Investing by Robert P. Kreitler
Getting Started in Futures ... Gelb
Getting Started in Online Investing by David L. Brown and Kassandra Bentley
Getting Started in Online Brokers by Kristine DeForge
Getting Started...
... falling as interest rates rise. This
is because interest rates tend to rise when there is in a-
tion in an attempt to keep in ation from getting out of
control. Most bonds principal and interest ... buy
savings bonds at regular recurring intervals by debiting
your personal checking or savings account. You can also
manage your savings bond inventory on your computer
using the web site...
... (Muni/Treasury)
2 2. 14% 3.25% 65.85%
5 3.25 4. 375 74. 29
7 3.76 4. 50 83.56
10 4. 25 4. 875 87.18
15 4. 82 5.00 96 .40
20 4. 82 5.25 91.81
30 5.15 5.375 95.81
June 2002
rich
expensive,
pricey, costing
more money, ... viable
business again.
The reason for the distinction between investment-
grade and high-yield bonds is because at one time banks
were allowed to invest only in bon...
... also the Index of Coincident Indicators and
the Index of Lagging Indicators, neither of which individ-
ually merits much more than a passing glance; old news
usually isn’t pivotal news in the markets. ... a drop in the savings rate is bullish
for bonds because it is interpreted to mean that the econ-
omy has slowed, causing people to dip into their savings.
Disposable income = Personal...
... working for
you as soon as possible is the power of compounding.
When you invest in bonds, the interest you earn can be
reinvested and begin earning you interest. Then the in-
terest on your interest ... mutual fund investors are
bailing out in droves it can be a signal to buy. Contrarian
investing involves looking at what the masses are doing,
and doing the opposite. Since the idea i...