Secured bond: what is it?

Bond insurance protects bondholders from loss if the issuer defaults. Governments and companies sell bonds to raise funds for projects. Bond insurers are private firms or insurance companies that sell policies to bond issuers. The yields paid on bonds reflect the level of risk investors face. Insured bonds are not risk-free, and investors should only […]

Bond requirements?

Many service professionals need to be bonded, which involves a background check and insurance coverage. To get bonded, locate a bond company, complete an application, and undergo a thorough background check. Being bonded provides financial guarantee to customers and reassures them of the business’s reliability. Many service-related professions require employees to be bonded and often […]

What’s a Loyalty Bond?

Loyalty bonds are a type of insurance that covers employers against losses caused by fraudulent acts by their employees. Employers can purchase coverage from $5,000 to $25,000 USD for high-risk employees, and the insurance has no deductibles. The employer must provide a formal job offer to obtain coverage. Loyalty bonds create a win/win situation for […]

What’s mun. bond ins. ?

Municipal bond insurance protects investors who purchase bonds issued by government agencies. Issuers buy insurance to raise the bond’s rating, making it more attractive to investors. Insurance companies only insure entities with a strong investment grade credit rating. Municipal bond insurance provides protection to investors who have purchased municipal bonds, or munis, issued by state, […]

Best bond yield selection?

Understanding bond yields is important for choosing the best investment. High-yield bonds offer higher returns, but calculating the yield involves considering the bond’s price, face value, and interest payment. Yield to Maturity (YTM) requires a calculator, but it shows how much you’ll earn if you hold the bond until maturity. Buying a bond at a […]

What’s the covered bond duty?

Covered bond obligations are investment grade bonds backed by a pool of junk bonds, often corporate bonds, of varying credit quality. They offer stable backing and credible interest rates, making them an attractive option for smaller investors. A covered bond obligation is a bond that is considered investment grade. The bond obligation is backed by […]

What’s a high yield bond?

High-yield bonds, also known as junk bonds, are debt securities issued by organizations rated below investment grade. They are considered risky and have a higher default rate, so investors require higher coupon interest rates. Market changes and creditworthiness can affect the value of the bond, and they are generally more volatile than less-risky bonds. Credit […]

Surety bond defined?

Bond insurance protects companies from losses caused by their work and is purchased from specialized bonding companies. It is particularly important for companies with employees handling large amounts of money or working in homes or businesses. It provides financial protection against claims made by clients and can also protect against theft committed by employees. Bond […]

10-yr bond yield?

A 10-year bond’s yield combines interest income and principal gain/loss to calculate an average annual rate of return. The yield assumes interest payments will be reinvested at the same rate and can fluctuate due to changes in interest rates. The yield on a 10-year bond combines the bond’s interest income and its principal gain or […]

What’s an injunctive bond?

Injunctions can be granted by courts to prevent harm to the plaintiff’s interests. Injunction bonds can cover various types of injunctions and are available from surety bond and insurance companies. The amount of bail required varies by jurisdiction and is set by the presiding judge. Plaintiffs can apply for a bond online or with an […]

What’s bond order?

Bond order measures the number of bonding electron pairs in a molecule and is used to judge the strength of molecular bonds. It is calculated by subtracting the number of antibonding electrons from the number of bonding electrons and dividing the sum by two. Bond orders have practical applications in chemistry, including in the creation […]

What’s a bond equiv. yield?

Bond equivalent yield is a way to compare the yield of a debt instrument with an interest-bearing coupon value. It is calculated by dividing the purchase price per thousand shares by the purchase price and multiplying it by a figure representing the time period. The purpose is to determine if the investment is worthwhile. The […]

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