This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bond Investing 101 - How to Invest in Bonds, Funds and ETFs

How to Invest: Investing 101

Bond investing can range from simple U.S. Savings Bonds to complex corporate convertible securities. For the average investor, successful bond investment likely falls somewhere in between.
The articles and links below should help you on your path to becoming a successful bond investor.

Treasury Bonds

>> Which 30-Year Treasury Bond Does Everyone Quote?
When newscasters like those on CNBC report price changes and yields for "the 30-year Treasury bond," exactly what bond -- or is it a group of bonds -- are they reporting on?

>> How Does the Fed Funds Rate Affect Treasury Bills?
What happens to Treasury bill yields when interest rates go up? Do they react the same way as bonds?

Municipal Bonds

>> Zero Coupon Municipal Bonds: Tax Treatment
Is the buyer of a zero-coupon muni held to maturity ever subject to federal taxes (other than the alternative minimum tax)?

>> What is the MOB (Municipal Over Bond) Spread?
The MOB spread is the difference in price between the municipal bond futures contract listed on the Chicago Board of Trade and the Treasury bond futures contract listed on the same exchange.

>> Calculating Bond Yields: Municipal vs Taxable
In order to do an apples-to-apples comparison between the yield on a municipal bond and a taxable bond, you have to calculate either the taxable-equivalent yield of the muni bond or the after-tax yield of the taxable bond.

Advanced Bond Concepts

>> What is Bond Duration?
Duration gives investors a way to compare bonds with different maturities and coupons.

>> What is Bond Convexity?
If duration describes the approximate relationship between price and yield, convexity describes the actual relationship between price and yield.

>> How to Measure a Bond's Interest-Rate Sensitivity
Duration and average life are different ways of measuring the interest-rate sensitivity of a debt security.

Taxation of Bonds

>> Do Bonds Bought at a Premium Produce Capital Losses?
Since a bond bought at a discount generates a capital gains tax liability at maturity, does it generate a capital loss deduction at maturity if bought above par?

Bond ETFs and Funds

>> ETFs vs. Mutual Funds: High-Yield Debt
For long-term investors, mutual funds that invest in high-yield debt outperform comparable ETFs.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%
Top Rated Stocks Top Rated Funds Top Rated ETFs