Some providers have launched various "inflation-rate bond" products into the market in recent times.
Still, floating-rate bond funds may be the best fixed-income deal available in an environment of rising short-term interest rates.
The slope of the yield curve can be measured in varying ways but is conventionally thought of as the long-term government bond rate minus the short-term government bond rate.
FORBES: Ken Fisher Likes Toys, Semis And More For The Rebound
The rate on the savings bond is 0.44% higher than the rate of the 20 Year Treasury bond.
The second reason for likely interest rate increases can be attributed to the correlation between the Federal Funds Rate and bond interest rates.
And this is even more true of short-term instruments such as the overnight Fed Funds rate than it is of a longer term bond rate, because as a general rule, the shorter the duration, the lower the risk.
As of Thursday, a 5 year AAA corporate bond has an interest rate of 1.21% and a 5 year AAA muni bond has an interest rate of 0.93%.
FORBES: Obama's Deduction Cap, Tax-Exempt Bonds, and Economic Illiteracy (WSJ Example)
When thinking about the cost of this kind of arrangement, many people would focus on the interest rate on the bond the government is issuing (just as they focus now on the interest rate on the promissory notes).
FORBES: How Much Would Ireland Benefit from Replacing the Promissory Notes with a Long-Term Bond?
As stock prices and the 30-Year bond rate moves higher, stocks become less attractive fundamentally.
FORBES: Wal-Mart, Macy's And Five Other Retailers To Buy And Trade
When rate hikes slam bond prices across the board, plenty of Treasurys have been handy to cover short positions.
The Italian bond rate reached a record of 7.48% last Wednesday, draining investor confidence and hastening Mr Berlusconi's departure.
As the 2006 law continues to phase in, the higher blended corporate bond rate is causing significant reductions in lump-sum pension values.
Debt has an obvious cost: the interest rate on a bond or loan.
Suttong, a battery maker, was recently forced to raise money at 450 basis points over the prevailing rate in the bond market.
That change is being phased in from 2008 through 2012 and allows companies to utilize a blended corporate bond rate to calculate lump-sum pension values.
The bond rate tells us the truth about ourselves when we are the ones setting it through our production, consumption, savings and investment.
Knowing when your employer intends to integrate the corporate bond rate into your plan, and the impact this will have on your lump-sum value, is crucial for your retirement planning.
For years, strategists and soothsayers have been predicting that low rates on bonds, generally benchmarked by a 10-year Treasury bond rate that has largely remained under 2%, would force investors into riskier assets.
This seemingly greedy deal for Goldman essentially lends money to InPhonic at a fat 9% junk bond rate, and as a sweetener it will be able to increase its stake in INPC by 25%, to about 6.27 million shares or 17% of the company.
But with coupons closer to 3.7% today, the same two-point rate increase cuts the bond's value by 28%.
Yield factors in both the interest rate paid by the bond and the actual price of the bond.
FORBES: How To Get More Diversification With Less Interest Rate Risk
You should consider the coupon rate paid by your bond, which may be higher than the yields currently quoted for Treasuries.
FORBES: How To Get More Diversification With Less Interest Rate Risk
So when an advisor offers a bond fund rate in the range of 3-7%, it can seem like a logical choice.
Say the rate on the Spanish bond was 5% and Corzine was able to purchase at a 10% discount to par (100) or 90% of face value.
FORBES: Jon Corzine: Criminal Or Just Plain Old-Fashioned Stupid?
The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.
FORBES: Treasury Confirms May 2011 Series I Savings Bond Rate
Including, if you should so with, synthetics which all involve a currency transaction which mimics the movement of any bond, interest rate, stock, commodity.
FORBES: The European Financial Transactions Tax: An Interesting Detail
Hopes of a halt to further interest rate hikes also spurred the bond market, with the yield on the ten-year Treasury falling .071 to 5.059%.
This strategy gives you the higher interest rate of the long term bond but also gives you flexibility to buy and sell the short term bonds if interest rates rise.
Draghi has proposed actions such as further bond purchases, rate cuts, and a new Long-Term Refinancing Option, which allows the ECB to lend to eurozone banks at very low interest rates.
FORBES: FOCUS: Fed Not Likely To Announce Stimulus At FOMC Meeting; Gold Might Be Pressured
The movement in major government bond yields - the implied interest rate that countries pay to borrow money - was small - an indication that bond investors saw limited risks at the moment.
应用推荐