Discover the semi-annual bond basis (SABB), which lets investors compare bond yields with different payment schedules, standardizing evaluations for informed decisions.

Bond washing involves selling a bond just before its coupon payment is due and repurchasing it after the coupon is paid. This practice was once used to gain tax-free capital gains but is banned in ...

Bonds are often part of many long-term investors’ portfolios because of their ability to add diversification, potentially minimize risk and bring in income. While there are many different types of ...

Zero coupon bonds are taxed differently because they don't pay regular interest. Instead, they're sold at a discount and reach full value at maturity. Each year, investors must report "imputed ...

As a bond provides a contractual right to a series of future payments received at specified points of time, the price for a bond is simply the present discounted value of the future cash flows. The ...

Discount bonds may look simple, like something is offered at a lower price, but they carry a unique mechanism that sets them apart from other fixed-income investments. These bonds allow better ...

Most people think of bonds as being appropriate for those who need regular current income without a huge amount of risk. Yet some bonds are structured specifically not to pay income currently. The ...

In “How Does the Fed Control Interest Rates in a Free Market?” we wrote: Unlike stocks, each bond contract has unique characteristics that define how repayment will occur. Every bond contract has at ...

Investing is income-centric. Most of what people call fixed-income bonds offer some form of regular dividends, usually monthly interest installments. But would you be interested in a financial ...