How do treasury bonds work and are they a good investment? - are bonds marginable interactive brokers
When I bought a 30yrs 50 million treasury today does that mean? What would my investment performance? My tax program provides an option to purchase the bonds, and knows nothing about her tax refunds. I wonder whether it's worth, by a few hundred dollars in obligations.
6 comments:
You can be a good investment for the safety and protection against the economy. Treasuries were more than 20 percent in 2008. It's a good thing to have in your portfolio.
http://www.treasurydirect.gov/indiv/prod ...
Stay away from Treasury bills, far below the inflation rate, losing everything.
the purchase of government bonds to pay that about 1% or 3% too much risk, if the government is printing money. The U.S. government has too much debt and can not afford to pay is the only way, to print money) (increase in money supply, this would lead to inflation) (less purchasing power. Inflation requires higher interest rates, bond prices decrease.
For example: Suppose you buy $ 50 bond and yields of 10% ($ 5 discount), if applicable, the interest rate to 20% of the share purchase on $ 25 coupon for $ 5 drops to 20% no one else.
State borrows money from people, they do so via the links.
The bond is a contract between a person who has money and an organization, the money will be used.
the person who has money is what pays the organization who need the money, the agency that takes a lot of money TauxDInteret defined in the contract. the end of the contract, the person receives his money. (plus he has the interest and the annual accuired)
For the moment, with high inflation and low TauxDInteret, bonds are not a very interesting investment. gives a low yield, while) the amortization of the value of money (due to inflation, which is probably more important than this performance.
many people avoid for their money in gold in the moment. Therefore, the price of gold is so high. Gold is an investment in time at the right time to decide it for you.
These are not good investments. If you bought the tape EE, pays 1.2% interest. Wow, what a deal! If a bond pays 3.4% interest. That is not bad and is semi-annual inflation adjustment.
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