Bond Features Tutorials

Bond Discounts and Premiums - Learn why bonds can be bought for more or less than their original prices. In this tutorial on discounts and premiums, we will discuss some of the factors that lead to changes in bond prices. Zero coupon bonds will also be explained. At the end, there is some discussion of how discounted bonds are taxed.
>Bond Basics
>What Are Bond Premiums and Discounts?
>What Factors Affect Bond Prices?
>A Unique Discount Bond
>Special Tax Consequences of Discount and Premium Bonds
>Bonds May Sell for More or Less Than Their Face Values

Bond Duration - Duration, not to be confused with maturity, is the subject of this tutorial. It is defined and discussed both as an investment concept and as a tool to help investors. Of note is a discussion of how interest rates influence the duration of bonds. The tutorial uses several examples to illustrate its points.
>Bond Basics
>Duration Defined
>The Properties of Duration
>The Effect of Changing Interest Rates on Bond Values
>Duration is a Guide to Selecting Bonds

Callable Bonds - Many bonds are issued with the callability feature. Learn what callability is and why it is used with bonds. The tutorial also covers how investors can benefit from the callability feature. Some attention is paid to the concept of yield-to-call, which is useful to know when buying callable bonds.
>What Is Callability?
>What Are Characteristics of Callable Bonds?
>Why Do Companies Issue Callable Bonds?
>What Benefits Do Investors Receive When Their Bonds Are Called?
>Bond Buyer Beware

Immunization - If you would like to protect your bond investments from changing interest rates, you might want to learn about the strategy of immunization. Learn how immunization can be used to achieve a fixed rate of return from your bond portfolios. Discover how it can protect your bonds from both price and reinvestment risk. You'll also learn the role of duration in the immunization process.
>What Is Immunization?
>What Is the Purpose of Immunization?
>Variations on Immunization
>Immunization Can Protect You From Changes in Interest Rates

Introduction to Bond Features - This introduction explains the basic characteristics of bonds. It examines the lifespans of bonds, how bonds are priced, and the terms used to measure their rates of return. Certain bonds can be converted into stock, and some are backed by collateral. The interest on some bonds can even be deferred from taxes. All of these bond features are covered here.
>Bond Maturity
>Callability
>Put Provisions
>Convertibility
>Secured and Unsecured Bonds
>Tax Deferral Features
>Interest and Yields
>Discounts and Premiums
>Know the Many Available Features of Bonds Before You Invest

Municipal Bond Insurance - Before you buy a municipal bond, you may want to see whether it is insured. This tutorial explains why and how some municipal bonds are insured. It also covers the effects of municipal bond insurance on your municipal bond investments. Closing the tutorial is a description of three companies that insure bonds.
>Why Are Municipal Bonds Insured?
>What Does Municipal Bond Insurance Insure?
>How Municipal Bonds Are Insured
>Disadvantages of Insuring Municipal Bonds
>Who Insures Municipal Bonds?
>Should You Buy Insurance?

Taxable Equivalent Yield - Find out if the tax break on municipal bonds is worth the lower interest. This tutorial provides you with formulas to determine the amount you would have to earn on a taxable bond to equal what you would earn on a municipal bond. The formulas take both state and federal taxes into account.

Yield Curves - Investors use yield curves to predict future economic trends. Read this tutorial to understand how yield curves are generated and how they can be used to make economic predictions. Graphs are included to illustrate some example yield curves. The tutorial also includes three theories that explain why yield curves change.

Course Topics:
Bond Basics | Types of Bonds | Bond Features Buying, Selling and Trading Bonds

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