There are things in life we all wish we’d never heard of: bacon-flavored toothpaste, tramp stamps, combovers, meat from a can. That sentiment is true in the investing world, too, especially for those of us who have been burned once or twice. But remember, information is the best asset, and knowing more is always better than knowing less. Ask yourself how many kinds of bonds you can name, and you’ll know what I’m talking about. Here are a few more that… Read More
There are things in life we all wish we’d never heard of: bacon-flavored toothpaste, tramp stamps, combovers, meat from a can. That sentiment is true in the investing world, too, especially for those of us who have been burned once or twice. But remember, information is the best asset, and knowing more is always better than knowing less. Ask yourself how many kinds of bonds you can name, and you’ll know what I’m talking about. Here are a few more that you’ve probably never heard of. Step-Up Bonds A step-up bond has a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. Government agencies, as well as Fannie Mae and Sallie Mae, issue these bonds.#-ad_banner-# Consider a five-year step-up bond issued by Company XYZ. The coupon rate might be 7% for the first two years,… Read More