ShmoopTube

What are Convertible Bonds? Convertible bonds are bonds that have a provision to be converted into equity common shares at a predetermined strike p...

What is a muni bond? Muni bonds are bonds issued by the government. They are used to raise the money required to pay for government responsibilitie...

What is a zero coupon bond? Zero coupon bonds are an interesting investment because they don’t pay any interest. They are only desirable because...

What is Balloon Interest or a Balloon Payment? Balloon interest happens when bonds with growing interest are held for a long time. A balloon paymen...

What are Above Par and At Par? Above par is when bonds trade at higher prices than face value. At par is when bonds are trading at face value. It s...

What are Freddie Mac and Fannie Mae? They sound like snack cakes to us, so, uh...maybe we should watch this video.

What is amortization? Amortization tracks the decline in value of a contract or service, usually paid for in advance. You received $10,000 in advan...

What is the maturity of a bond? Maturity refers to the time when an investment ends. When maturity happens, the investor is either on the hook for...

The inverse relationship refers to the fact that as interest rates go up, bond prices go down, and vice-versa. Bottom line reason is supply and dem...

A moral obligation bond is a bond that is paid or backed by a well-heeled, better funded entity should the bond default.

What is a Dual Currency Bond? Multinational corporations often find their books filled with foreign currencies from countries where they have busin...

A surety bond is an agreement between three parties in which one party guarantees that a second party will fulfill a promise to the third party.

What is a savings bond? And does it also take its drinks shaken, not stirred?

What is an Agency Bond? Agencies bonds are issued by government agencies, not the treasury. The typical government bonds (T-bills, T-notes, and suc...

What are the different types of bonds? Well, a mortgage is the biggie. Then there are government bonds, which are at the bottom of the risk ladder....

What are government bonds? Uncle Sam needs dough. He sells bonds in the form of T-Bills, T-Notes, Treasury paper of all flavors. His credo? The cre...

Why do companies buy back or repurchase their own stock? Companies buy back their own stock because it helps them to increase the value of stock an...