Present Value of Annuity Problem
A 30 year treasury bond is issued with face value of $1,000, paying interest of $60 per year. If the going rate for similar risk bonds increases shortly after the T-bond is issued, what happens to the 30 year Treasury bond’s: Do they go up, down or stay the same?
a. coupon rate
c. yeild to maturity
Archive for the ‘Bonds’ Category
Present Value of Annuity Problem
Ohio tax code interest from T-Bills, T-Notes, and U.S. Bonds are taxed exempt. Where can I find the amount of tax exempt for each US treasury Note? My monthly statements only has interest but no breakdown for each note.
i want to add this ticker symbol on my watchlist. so any1 here know what is the ticker symbol for a 10 yrs treasury bond? thx ina advance.
us treasury bond that is.
I would like to by my neice and nephews savings bonds for Christmas. I have gone on treasury directs website and see how to buy them for myself but not as a gift. Does anyone know how I would do this? I have been told you can’t get them their your local bank anymore.
Do you think that mortgage rates will drop in the next 30 days? I know it’s not a sure thing, but I’m curious.Sunday, May 3rd, 2009
We’re planning to refinance our 7-year ARM (5.125%, expires 12/2011) and 7.9% 2nd mortgage. Right now, we can get it at 6.25% in one mortgage, but we were hoping for a 6.125 or 6% mortgage (since we’re not in a huge rush to refi, but want to play it safe since rates are pretty decent on 30-year loans).
I know the Fed might drop rates again before the end of the year, but I know it doesn’t directly affect rates as much as stocks, bonds, and the Treasury Bill. These are the aspects of the market I am clueless about…
What do YOU predict will happen or what would you recommend we do? We would be paying less than we pay now, no matter what, so we’re gonna refi, it’s just a matter of when.
Thanks SOOOOO much for your help! If you give the best/most accurate prediction or recommendation, I’ll send you a box of goodies (7-layer bars, cookies, brownies, or your choice)! And they’ll be awesome, I promise!
FYI: We do plan to stay here for AT LEAST 10 more years. Otherwise, we wouldn’t consider switching.
Our loan would be for $320,000.
I should also point out that our mortgage payment would DROP from $2428 to $2358 (at 6.5%). Our second mortgage at 7.9% on 90,000 is the reason…
We’ve paid $9,000 in principal in the past 33 months and our home is valued at $380,000 (appraised).
Buying down the rate actually costs more, even long-term, so we won’t be doing it again.
Thank you so much, everyone, for all of your thought-out answers! I’d love even more…
I think we can afford to wait a few more months–if needed–to catch a slightly better rate. Our credit is good (700 ), so I think we can get a decent loan.
I was thinking about opening a treasury direct account so I could switch my paper savings bonds to electronic and buy and manage them on line. My question is if this is a safe option and if anyone has done this with success or failure?
http://www.treasurydirect.gov/indiv/research/indepth/smartexchangeinfo.htm is the site I was looking into.
Please do not report this as someone already has and I appealed it and it was approved. I am not selling anything.
I know how much interest I must claim for some U.S. Savings Bonds I cashed. What is the Federal Identification Number of the U.S. Treasury? I can’t find it anywhere, and I need the payer’s ID to put the interest on the tax form!
Do people know the US Treasury can’t print up extra money until the Federal Reserve LOANS the money to them?Sunday, May 3rd, 2009
Yes the Fed loans the money to the government in the form of bonds that will have to be paid back later. And guess what, there is NO limit to how much money the Federal Reserve can loan to the government thereby inflating the money supply beyond all belief. This is how we are 9 trillion dollars in debt. AGAIN – without the Federal Reserve loans, the treasury can’t print up all this money to pay interest on debt it already has. The treasury doesn’t decide how much money to print up, the government and the Feds do that. Do people understand this? How can the Federal Reserve cartel be Constitutional? Why are people confused?
so i have investigated now that to pay for Iraq war US produces “Treasury bonds” and sells to other countries.
main buyer from my investigation is China, which has trillions invested to those bonds
so now question, what other countries you know investing in those US Treasury bonds, which pays for Iraqi War
I just need the equations (there are 3 of them), not the answers. thanks.
Kelly has $20,000 to invest. As her financial planner, you recommend that she diversify into three investments: Treasury bonds that yield 5% simple interest, Treasury bonds that yield 7% simple interest, and corporate bonds that yield 10% simple interest. Kelly wishes to earn $1390 per year in income. Also, Kelly wants her investment in Treasury bills to be $3000 more than her investment in corporate bonds. How much money should Kelly place in each investment?
actually, can you show me how to do it step-by-step? i tried to figure it out with just the formulas, but i keep on getting stuck. thanks.
the 5% simple interest are bills, not bonds