Posted by Interest Rates Today on 04/20/08 in Safe Investments, Glossary
A bond is defined as an interest-bearing certificate issued by a government or business, promising to pay the holder a specified sum on a specified date.
Common wisdom says bonds are a safe haven from stock market turmoil. Does that mean you should buy bonds if that turmoil comes from recession or inflation?
Complicating the situation is […]
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Posted by Interest Rates Today on 02/29/08 in Glossary
The frequency that a financial institution compounds interest on your deposit. Banks and financial institutions routinely use compounding to pay you a higher interest rate.
For example, a financial institution may be offering a CD that pays interest at 10%. If the institution does not compound interest, you will receive 10 percent of your investment as […]
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