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How do investment banks make money themselves issuing bonds for companies? |
How do investment banks make money themselves issuing bonds for companies? Actually its pretty easy: Interest |
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You will get a 1099 form from your brokerage, or whoever issues the Interest payments to you (if you bought it directly from the Issuer). Since you bought this at discount, the discount is going t... Interest rates increase, prices of bonds decrease. ...investing in coke (the kind you snort) offers very high short term returns. About 20 : 1. ...Bullish market? The peak was near the end of 2007. We are bearish right now. Are you looking to have a short or long term investment portfolio?, Are you going to be doing fundamental or technical ... A CD would be your best bet by far, except for one thing: you will have limited (if any) access to your money until the CD matures. Usually the shortest term for a CD is 6 months, but check with... Costs? They normally have much higher interest rates, which is a cost to the company issuing the bonds. Is that what you mean? That is due to the much higher risk that the bonds will default. As a new investor, the safe option is to invest in no-load, low-expense-ratio mutual funds from Vanguard or Fidelity. Alternative investments like unit trusts are Not safer. ...It sounds like he's getting a bond with a discount. This would mean that there are no interest payments, just the value of the bond goes up as the interest is earned. Government bonds are g... |
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