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 […]
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 […]
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 […]
Case bonds provide immediate financing to litigants in civil suits. The litigant sells a bond to a company, which buys the right to the proceeds of the suit. If the plaintiff wins, they pay back the bond and a fee. It’s important to review the terms carefully and consult with an attorney before signing. A […]
An enforceable bond protects an estate’s heirs during probate. The executor’s bond guarantees the executor fulfills their duties. Waiving the bond requirement can speed up the probate process. The cost of the bond varies based on property value, and a bond company can issue it. If a claim is paid, the bond company can take […]
Dragon bonds are long-term debt obligations issued by Asian nations in foreign currencies, attracting foreign investment and providing access to capital for projects. They can be bought and sold in secondary markets and carry risk. China is a major producer of dragon bonds, and the US dollar is a common currency choice. They offer a […]
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, […]
Bond yield is the return an investor can expect from a bond issue within a given period, calculated using current data. A simple formula divides the annual coupon by the bond price. Understanding bond yields is important for investors to determine whether to buy and hold a bond issue. Bond yield is essentially the amount […]
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 […]
Savings bonds are a safe way to build a nest egg for retirement, with Series EE and I bonds being the most common types. The US government imposes an annual limit of $5,000 on purchases, and while they carry almost no risk, the interest earned is small compared to other investment options. The growth is […]
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 […]
Savings bonds are a safe way to invest in Treasury bonds issued by the US government, with Series EE and Series I being the most common types. They offer a low-risk return on investment, with a limit of $5,000 per year and the option to purchase electronic vouchers. The bonds have benefits and responsibilities, including […]
Prison bonds ensure a defendant appears in court and can be paid in cash, by a bail bondsman, or with personal property. Assets used for bail are not returned until the case is finalized, and if the defendant misses a court appearance, the assets may be withheld. A person cannot revoke a prison bond and […]
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 […]
A peace bond is a court order that requires one person to keep the peace with another person, often granted instead of criminal charges. It is usually granted to individuals who fear a specific person and requires the defendant to avoid threatening or harmful behavior. The terms of the order vary by jurisdiction and usually […]
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 […]
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 […]
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 […]
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 […]
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 […]