Investing In Treasury Notes & Bonds | What Are They, When Interest Is Paid & When Auctions Happen

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Are you thinking of buying longer-dated Treasury notes & bonds? If yes, watch on as I talk about:
1. What’s the difference between Treasury bills, notes & bonds?
2. How do the interest & principal payments on longer-dated Treasury notes & bonds work?
3. What’s the difference between the interest rate & the high yield at auction?
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30 сен 2024

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Комментарии : 175

@DiamondNestEgg 10 месяцев назад

📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details! ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters ⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf ⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 ru-vid.com/show-UCnexoc6tvesvcCEzZhmI-Agjoin Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY. SOURCES www.treasurydirect.gov/auctions/announcements-data-results/ www.treasurydirect.gov/marketable-securities/treasury-bills/ www.treasurydirect.gov/marketable-securities/treasury-bonds/ www.treasurydirect.gov/marketable-securities/treasury-notes/ru-vid.comgaming/emoji/7ff574f2/emoji_u1f4e2.png

@RhettBartlett-j5v 8 месяцев назад

do you have an email? I am starting a fund and had a couple questions about treasury ladder on schwab. Thanks!

@stephenmccauley8191 10 месяцев назад

Yes a video on purchasing Treasures at auction would be helpful. It would also be helpful to know the pros and cons of buying treasures in the secondary market. Thank you for all your informative videos.

@user-ri5vg2gg2q 10 месяцев назад

ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-rFuiC-UNeMc.htmlsi=6EVI2gyTB0OkqwB7

@JeffreyEllingson 10 месяцев назад

We are a Fidelity family, so I'd prefer a video on how to purchase via Fidelity or Treasury Direct (whichever you might recommend). Nice job on the video!

@Jim_in_Ind 10 месяцев назад

I would also like to see this

@josephbecker3848 10 месяцев назад

Agree

@DiamondNestEgg 10 месяцев назад

Stay tuned folks!

@gilbellamy7713 10 месяцев назад

I have both Fidelity and Schwab. So, I am interested in both. Thanks for your help and all you do! You’re an excellent teacher!

@mikef445 10 месяцев назад

Jennifer, nicely done as always. Your a wonderful educator and it's a pleasure learning the building blocks necessary to be an educated treasury instrument investor. Keep up the good work. Mike.

@Vacationtime247 10 месяцев назад

Reducing our 20 year bond purchase for next Monday after todays CPI sell off, the rest will go into a 4 week T-Bill. Perhaps PPI and consumer sales will push yields back up, but still think we'll wait before buying higher amounts on the longer term. The big unknown being the looming potential Government shut down on Friday. VT247

@drj6418 10 месяцев назад

Another GREAT video....I would just LOVE to see videos both dealing with step by step instructions on how to buy treasuries on Treasury Direct, and Vanguard as well as how to sell on those sites as well. Please also do a video on how to sell an I-Bond before maturity on Treasury Direct. Thank you!

@murraypassarieu9115 10 месяцев назад

She’s already done videos on buying treasuries on VG and Treasury Direct. I’m sure they’re still on RU-vid

@eliseleblanc740 10 месяцев назад

I have extra money that I could use to make extra payments on a home equity loan but that’s only at 3.5% interest so instead I’m taking that money and putting it into 2 year notes. When they mature if Treasury rates are below the 3.5 I’ll pay down the loan. If they’re higher I’ll reinvest

@ccos3302 10 месяцев назад

Jen, I have used your tutorial to buy T-bills on Schwab. As we move to buying longer dated fixed-income securities, I would love to understand how to buy Notes and Bond on Schwab. But I would also love to know how to leverage any Bonds I buy should interest rates decrease in the future. Thanks for all you do; I feel like the student sitting in the front row of your class!

@yetivanmarshall1473 10 месяцев назад

Just click on products, then start investing, then scroll down to Treasury Auctions. They usually appear a day or two before the next auction.

@jsilverback3795 10 месяцев назад

It would be good to know how and when you would pay the taxes on the interest you have earned. Does Treasury send you a statement?

@orangecountygreg3519 10 месяцев назад

I FINALLY understand the difference between high yield and interest rate. Thank you!!! I'm retired and have laddering 17-week T-Bills but considering moving into 5 years as I feel interest rates may have peaked.

@DiamondNestEgg 10 месяцев назад

😀

@juanlyrodriguez3339 10 месяцев назад

@@DiamondNestEgg loved the video. It would be so helpful if you can do a follow up video on how to buy notes and bonds in the secondary market. Please consider. Thanks

@cindyfoster1127 10 месяцев назад

Would love a video comparing currently buying ibonds vs treasury bonds in today’s market. Pros and cons of each and if T bond purchases can be bought and redeemed before maturity through treasury direct.

@josephpapajr.3757 10 месяцев назад

Jen: Good job you are doing. Please consider a presentation on US Treasury Zeros. Why are yields generally lower than regular Treasury bills, notes? What are the tax treatments on Zeros?

@owlhouse000 10 месяцев назад

I'd like to see this, too.

@miatafunrun3078 10 месяцев назад

If I buy $10K of T-Bill and purchase price is say $9700. Then didn't I effectively get the interest on the purchase date and $10K returned to me on maturity?

@murraypassarieu9115 10 месяцев назад

Yes

@SpaceClick 10 месяцев назад

@@murraypassarieu9115 Not really, you don't get anything until maturity date. But yes, the "interest" on T-Bills is represented by a discount when you buy it. I suppose you can look at it as paying $10K for it and then immediately getting $300 in interest. But I tend to look at it as paying $9700 and getting $300 at maturity, since if you buy it in 2023 and the bill matures in 2024, then you have to declare the interest on your 2024 taxes, not 2023.

@michaelavery3964 10 месяцев назад

This is EXACTLY the video I 10:56 needed today! Thank you. Im definitely interested in seeing a step by step on Fidelity. At the last 30 year auction, i clicked around and swear it said it sas offering a "5% coupon" which i thought weird since I thought the coupon would be the interest rate set at auction. (which hadn't happened yet and wasnt that high when it did happen) I feel like what i just said was vague and confusing, but hopefully itll be cleared up when you make the video

@StanHasselback 10 месяцев назад

Excellent presentation. I'm already laddering 13 week T bills but plan on buying some notes soon. Yes it would be great to see you purchase some of these on line.

@woodswine7 10 месяцев назад

I don't understand how note auctions determine both price and interest rate. Given that the duration of a note is fixed, both the price and the interest rate determine the yield. Are there bids placed for the price and bids placed for the interest rate?

@yiw.2244 10 месяцев назад

Very helpful. Can you walk us thru how to purchase notes/bonds via merrill lynch?

@SpaceClick 10 месяцев назад

If you are talking about Merrill Edge, you need to call them to buy first-issue treasuries at auction (I don't think they charge extra for this). If you mean on the secondary market, then I do think there is a way to do it online, but not sure how.

@oleskool4908 10 месяцев назад

Thanks for your insight on long term treasury.

@doran713 10 месяцев назад

Yes, I would be interested in both Vanguard and Fidelity methods of purchase. Also, 6-month interest payment goes either into LT investment at the same interest rate or returned back to the brokerage account option?

@Maher-ub6vu 10 месяцев назад

Agree. honestly I am not clear why buy it directly from Treasury direct web site when I have a Fidelity account for my 401K and Roth IRA. I think it is better to do that in the same spot to check progress periodically.

@SpaceClick 10 месяцев назад

@@Maher-ub6vu Most people do buy it in their brokerage accounts (particularly if it is in an IRA, as TreasuryDirect does not offer an IRA), but there are some advantages to buying through TreasuryDirect, such as lower minimums. Brokerages require a minimum purchase of at least $1000, some even more, whereas TD offers $100 minimum. Some brokerages don't offer automatic rollovers like TD does (when bill/not/bond matures, it automatically buys a new one). Some brokerages don't allow you to place a bid at auction for a new bill/note/bond until you have the actual cash matching the face value you are bidding on in your account, whereas TD allows you to place any bids without having the cash at hand (it will be debited from your bank account on settlement date, and if you don't have enough, the order is simply canceled with no penalty, other than maybe an NSF fee from your bank). There are also advantages that a broker has over TD, for instance being able to quickly sell a treasury on the open market (if you have a treasury held at TD, you would have to first transfer it to a brokerage in order to sell it and that can take a long time).

@Kupula99 10 месяцев назад

Great stuff as always! I think it would be interesting to see the process of selling notes and bonds if the longer dated securities need to be liquidated (especially on schwab). Thanks!

@GilbertFleming 10 месяцев назад

I just bought some shares in ISHARES 20 PLS YEAR TREASURY BND ETF TLT: NASDAQ. What are the pros and cons of using this as opposed to buying 20 year bonds? I want to put a part of my portforlio in long term bonds.

@kentam2492 10 месяцев назад

As always, the presentations are well thought out, easy to understand using real data. You might want to show the power of compounding interest based on a hypothetical investment.

@DiamondNestEgg 10 месяцев назад

Hi Ken. Interest is paid out on T-notes and bonds on the coupon date (so no compounding like with I-Bonds). We’ll mention that in the next video.

@kentam2492 10 месяцев назад

@@DiamondNestEgg no but you can take the interest and compound it.

@SpaceClick 10 месяцев назад

@@DiamondNestEgg This is what I was wondering, if the interest is paid out to you or goes back in to the bill for future compound interest. I've inherited EE Savings Bonds and those appeared to accumulate compound interest and were paid after maturity. I guess regular bonds are different than EE bonds, and the EE bonds I had, I believe, had different rules than the ones offered today. EDIT: After a little research, I see that there are "US Savings Bonds" (which EE bonds are) and "US Treasury Bonds", and they are, indeed, different beasts.

@fallout187 10 месяцев назад

Not sure if this is possible, but is there a way to make a treasury note/bond ladder and time the 2 six month payments so you have monthly cash flow? If yes, I would love to see a video on it using treasury direct.

@larryzezula9847 10 месяцев назад

Please do video about purchasing Treasury notes through Schwab and Vanguard including comments on the laddering concept mentioned above by a viewer. Great explanation, yet again. Most appreciated.

@amydevico1640 10 месяцев назад

so Jen what's behind this video. are you thinking rates may have peaked now. what are everyone's thoughts on that. are rates at the peak? or do folks think there is good chance they may once again go higher

@warben3 10 месяцев назад

A video on buying treasuries at Schwab would be helpful Thanks.😊😊

@bruceanderson8179 10 месяцев назад

Sorry to jump the gun the other day mentioning 2 year Treasuries with a 5% coupon. Managed to lock that in this morning with a YTM of 5.061. Now I look at the inventory and that issue is now has a YTM of 4.854% as the note now carries a premium.

@flywithfeifei 10 месяцев назад

Thank you and this content is exactly what I am looking for! Great content and very clear explanations, a job well done! As I expect the rate is closing to the peak and I am thinking about to start purchasing longer term noted & bonds now. And I am interested in knowing what are the pros and cons for buying long term (10 or 20 years) notes and bonds through treasury direct vs. brokerage such as Charles Swab or Fidelity. My understanding is that you can not sell Bonds/ notes on the 2nd market before maturity from Treasury direct but can do so from brokerage account. However, with the recent financial uncertainty of Charles Schwab, is that safe to purchase long term notes and bonds through CS? What will happen if they go bankrupt? And how about the purchase price? Are they be the same through Treasury Direct vs brokage account? Thank you, Jennifer!❤

@Gwinter452 8 дней назад

Do the 6-month interest payments go back to your bank account, or does it stay inside the note/bond to compound?

@bobr.592 10 месяцев назад

Jennifer, thank you! Yes, it would be good to see a video on how to buy Treasury Notes & Bonds at Fidelity. But first, it would be very helpful to know the reasons why it would be beneficial to go longer i.e. start investing in Treasury notes and bonds as opposed to the shorter term T-Bills which have been earning as much if not more than the longer duration notes/bonds.

@teeconsigliano7631 4 месяца назад

Thanks for the vid! Schwab's treasury auction schedule shows the 2, 5 and 7 year notes as "US Treasury 0%" Does that mean interest is paid at maturity?

@jbro6236 9 месяцев назад

Yes. Please explain the process on Fidelity. Ty

@dennismoore1116 10 месяцев назад

You are so terrific at explaining things. Short with everything needed, anticipating where people will need to be hand held thru specifics and all keeping it interesting. A few months ago I was only buying brokered CD's. Now I buy notes, t-bills, and TIPS. I learned everything I need to know how from your videos. I've supplemented that with some more in depth web pages once you have gotten me up to speed. You however helped me understand what was involved and feel confident enough to use these other treasury securities without being lost. Your specific how to purchase videos for Schwab and Fidelity were a big help too. A big thank you!👍

@takethecurseOFFwashingmachine 5 месяцев назад

So say you buy a 5 or 10 year note through a brokerage like fidelity/Schwab, etc. Will the bi yearly interest payments be deposited into your money market settlement fund for your use, rather than compounded into the bond itself? Also, If that’s the case, then I assume then the the interest paid is actually taxable in each year paid to me as well?

@dennisconrad1070 10 месяцев назад

Thanks! Always learn something new.Thank you for the easy to understand and well Illustrated video.

@PhilTomson 10 месяцев назад

Yes, definitely would like to see a tutorial on buying notes & bonds on Fidelity & Vanguard.

@brian5069 10 месяцев назад

Hi Jen! Yes, I’m interested in video instruction for purchasing notes at Vanguard. 11:53

@RichardJennis-lo9tf 10 месяцев назад

Yes would love to see a video on buying treasury notes on Fidelity

@dcooke4515 10 месяцев назад

Thanks for explaining the high yield vs interest rate. I've been following your channel for some time now and always learn something from nearly every video. I read a Barron's article today about "floaters". Apparently, they are 2-year notes but the interest rate resets weekly. Seems to me that would be a good deal if rates are rising, but not so great if rates are falling. Any insights to share on this topic? Thanks again for your exceptionally well-done videos!

@DiamondNestEgg 10 месяцев назад

Why We Don't Buy Floating Rates | What Are Floating Rate Notes ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-NZZEoSgU0CI.html

@thethrill2877 10 месяцев назад

So the interest goes into my account for me to take every six month ?

@amirsafayan 10 месяцев назад

Yes please. I was ready to pull the trigger on a 10 year bond but delayed because of the softening of the yields. And boy - they sure have continued to soften after todays CPI release.

@DiamondNestEgg 10 месяцев назад

Noted

@dannydoan3695 6 месяцев назад

Great tutorial as usual and thanks so much for the video. I was about to buy a 20 years Treasury Bond from Treasury Direct, but I see they have one for "19 year and 10 month with auction date of 4/17/2024" and "20 Year with auction date of 5/22/2024". I wonder if the 20 years is a new issue and 19 year and 10 months is the reopening. Can you please explain the different between the two? Thank you for your help

@dannydoan3695 6 месяцев назад

Never mind, I've got it. The 19 years and 10 months is the reopening.

@productivecough7148 10 месяцев назад

Yes, Fidelity for me.

@62orbetter4 10 месяцев назад

so there is a tbill tbond and t note?

@jessicabee87 10 месяцев назад

I'm learning so much from your channel! You make it easy to understand fixed income investments.

@robertoospina10 Месяц назад

Awesome. Thank you!

@BenRook 10 месяцев назад

Thanks for the detailed explanation. Always informative vids found here...cheers.

@MichaelSweeny-c8h Месяц назад

Enjoy the video 👍

@NatashaK808 8 месяцев назад

Hi than you , I'm new to this, will they let you know the interest rate before purchasing the note?

@ChristopherEvans-650 7 месяцев назад

If you are buying at a new issue auction, no. I buy 26-week T-bills, so rates don't vary much from week to week. The one advantage T-bills have to CD's or money market account are no state taxes. For someone like that lives in California, it saves me 9.2% that would go to the state.

@BryanPAllen 10 месяцев назад

Vanguard for me

@kehangao1568 10 месяцев назад

Thank you for sharing. An ibond question: If I were to receive an iBond as a gift this year and wish to redeem it, would the redeemed amount be considered as part of the iBonds purchased for this year, subject to a limit of $10,000? Thank you!

@9-1-juan6 10 месяцев назад

Just to confirm my understanding, if I am planning to follow the "4% retirement rule" (and ignoring potential gains/losses from market fluctuations) and I am satisfied with the interest payouts on 30 year treasury bonds, then I can just simply go with the 30 year treasury bonds right?

@tynesemcdaniel3834 10 месяцев назад

Good morning. Thank you for explaining this. So is the coupon rate the interest that is paid every 6 months? Is it reinvested. I am trying to purchase them in a brokerage account. Thank you

@k4m1ageo41 10 месяцев назад

Thank you! Would you be able to do a very short video on an explanation of the “Treasury News” Auction Results page generated by the US Treasury, specifically explaining the difference between the “High Rate” and the “Investment Rate”? Additionally, could you show the actual math involved in calculating the rate received at auction? I can never get the numbers to match exactly; always off by a little. Thank you!

@xmackc1100 10 месяцев назад

Question I have is about selling bonds. If I buy $10,000 bond at one time. Do I have a single $10,000 bond or is it actually a bunch of smaller bonds that I can sell in pieces like $1,000 at a time if I need cash? Also if they are bought in a 401k or retirement account, can they be transferred out without selling if I need to make a minimum required distribution?

@billisenberger7112 5 месяцев назад

A video on purchasing T-notes through Fidelity would be nice.

@oleskool4908 10 месяцев назад

Does bond or note compound semi annually? Or only pay out at simple interest?

@SpaceClick 10 месяцев назад

Simple interest paid directly to you, it does not go back in to the treasury.

@oleskool4908 10 месяцев назад

@@SpaceClick thanks for responding

@NeetuBajpai7799 10 месяцев назад

So unlike Agency bonds and CD’s treasury notes and bonds are call protected. Meaning interest rate wont come down for the purchased notes or bonds?

@elyssaberger5901 10 месяцев назад

Thanks so much!! Completely cleared up high yield! I’m already buying some on treasury direct :) but very little. Mostly continuing to ladder the TBills

@dogiego 10 месяцев назад

So 'High Yield' is the same as 'Yield-to-Maturity', correct?

@Michaeldotcom33 10 месяцев назад

Great explanation. Thanks! I just bought a 30 year bond and was wondering how it would work.

@kelvinortegasantillan5010 10 месяцев назад

I would like a video on how to benefit from this strategy buying Etf bonds for people outside US, thanks

@teeconsigliano7631 10 месяцев назад

Thanks again! Does note and bond interest go to brokerage account? How much do purchase price and face value differ on average historically?

@skk2028 10 месяцев назад

Great Video !! Is there a video on what happens if I sell Notes/Bonds before maturity?

@michaeldelatorre4429 10 месяцев назад

Would like to see a walk through of selecting and purchasing notes or bonds on Fidelity. Thank you for the great information!

@TheChinaPlay 10 месяцев назад

Very informative! Thanks!!! I always thought the high yield was the high of the yield at auction. The way you explained it makes much more sense.

@gilbellamy7713 10 месяцев назад

I have both Fidelity and Schwab! Excellent explainer-in-chief!

@brucesmith9144 10 месяцев назад

I have been buying Treasuries through Fidelity on the secondary market. Often one will find a very low coupon from an older Treasury, but the secondary market is selling these at prevailing rates. So if you have a 1.5% coupon, you’ll get that coupon value per annum and the full face value of the note at maturity. One thing that maybe should be discussed is that there are interest charges added to the purchase price of the security that covers the time since the last coupon payment.

@caryharris2358 2 месяца назад

Great video

@marcuspaz24 10 месяцев назад

Finally understand high yield for t notes and bonds. Thanks, Jen. I've only purchased t notes and bonds through TD. A video on how to purchase t notes and bond on the secondary market through Merrill would be helpful. Also, one on the arduous process of selling t notes and bonds purchased through TD and not held to maturity. Thanks for all you teach us, Jen.

@leena118 10 месяцев назад

This video contest is excellent! Thanks so much for sharing your extensive knowledge with us. I greatly appreciate it!

@25oc32 10 месяцев назад

Thank you. Can you do a video on how to sell bond/note purchased on Treasury Direct and how to decision to sell or hold from a pure profit standpoint (not considering need)?

@garryqualman8187 10 месяцев назад

I am starting with a series of $100. T bills to watch as I don't have a lot to work with but expect that to change soon

@S.A.1 10 месяцев назад

Thank you so much for such detailed video! Yes please make a video on how to buy these at Fidelity as well as Treasury direct! Thanks a lot and we call you the BONd queen in our household!

@frederickmacli9099 10 месяцев назад

Jennifer, as usual very informative. Would like to see a video on purchasing treasury notes on Fidelity in the secondary market.

@MS-tu5ew 10 месяцев назад

Yes, I would be interested in a video on how to buy notes and bonds at Treasury Direct. Thank you!

@sai-yung6789 8 месяцев назад

Don't buy long term US treasury notes. Interest rates will continue to rise in the long run, even the interest rate will pause rising or go lower for a short period of time in a near future.

@bonanzatime 10 месяцев назад

You always instinctively know what I want to learn when I want to learn it. I Love You😍

@bobcorio5145 10 месяцев назад

Yes please do a vid on how to buy on Treasury direct and fidelity.

@slimdawgwoof 10 месяцев назад

Thank you so much for helping us learn and making it clear and so relevant.

@kc6715 10 месяцев назад

This was really informative! Thank you.

@jennysethman8392 10 месяцев назад

Thanks for an informative video. I am interested in learning more on how to invest in these on Fidelity.

@AnimEva_33 10 месяцев назад

What a fantastic video! Love how much I learn from this channel

@lindaporter1718 10 месяцев назад

Video on building treasury bond or other bond ladder on Vanguard please

@patrickbailey1249 10 месяцев назад

So how do recommend reinvesting imterest earned to get the compounding effect ?

@johndherman75 5 месяцев назад

Very clearly explained….thanks!

@belliott4213 10 месяцев назад

Yes training on the bond purchase process it a good video idea..

@sueh6287 10 месяцев назад

Very informative video. Thanks!

@yunfeiqi3621 10 месяцев назад

Finally understood, thank you so much

@MILGEO 10 месяцев назад

I'd love to see a note buying video for Vanguard.

@douglastaylor43 10 месяцев назад

In never knew what high yield was. Thank you

@izzybee-hq6px 10 месяцев назад

Gold star for great and educational video..🌟

@alexadams1627 10 месяцев назад

Thank you for the explanation Jennifer!

@remington2277 10 месяцев назад

WOW! One of your best videos ever! I was wondering why an old CUSIP showed up for a “new issue”. T-Bill on Fidelity. Fidelity doesn’t seem to make it obvious as to whether the T-Bill is a new issue or a CMB. AND YES - I’d love to see videos on purchasing bonds and notes at Treasury Direct, Fidelity and Schwab. Like most of your followers, we’re watching the weekly interest rated and raising our ladders from 17weeks to 26 weeks and eventually to 52 weeks or longer as soon we start seeing the yield curves going back above water. Thank you! ❤️

@SpaceClick 10 месяцев назад

I've noticed that most T-bill are "reissues" of previous T-Bills, a 26-week T-bill, 13 weeks later, is then offered as a 13-week T-bill, a 17-week, is later offered as an 8-week and then a 4-week, etc.

@asadorprime6186 10 месяцев назад

Yes please do a video on how to buy with Fidelity 😊

@vote4pedro7 10 месяцев назад

Yes...Schwab!! Thank you!

@BorisLikesBonds 10 месяцев назад

Great video, Jennifer! 💎 I really like how you explained the different between the interest rate and the high yield rate. It was very clear. 👍 Which would you use to compare against a T-Bill? (knowing T-Bills are a different vehicle)

@DiamondNestEgg 10 месяцев назад

I would say that to compare - it would be the T-Bill investment rate vs the T-Note/Bond high yield

@kickeramps 10 месяцев назад

What's the reason for a higher, or lower face value purchase? If you buy $10k, why not just pay $10k?

@Ann-yk3sl 10 месяцев назад

Because the coupon or interest rate is fixed, the bond or bill price is adjusted up or down so that you get the prevailing interest rate (or something close to it).