Tbirdd. **Can still see isa's info -- here is some: Anyway for whoever is out there… the forex site I watch just did a TEST of the usd/iqn and the chart was only in a range of .4881 to .4792 which as you know means that it is worth more than Kuwait which is at .3032...Now the chart has gone back to somewhat normal, but with alot lower opening than it usually shows. I'm really excited.
GJHonor: mrs.) gm to all. this is a post I saw from Isa below is way different from her other post below.? isa52bc wrote 3h ago Yeah, I think I'm going to head off to bed...here is what I can tell you from the site I watch...the only currency in the basket that has moved AT ALL is the Rupiah, all the others have stayed at their opening rate, and of course the isd/iqn is still completely BLANK...no nothing...zip...nada...not even zeros...just blank.
Iko Ward: Well, let's see. Forex is showing 1130 on the dinar as it has for the past week. Markets are back up. ISX lost another 1% as it has each day for the past week. Gold is steady. Isa's post is interesting in that whatever platform she is viewing may have anticipated something or gotten instructions but they are all still slaves to the CBI at the end of the day. Forex showed 1130 all night. It's all good. It's coming.
Iko Ward: And I forgot, Canadian Dollar is active on the CBI. They really love you guys, been changing daily and for the better.
CO Dreamer: Iko at least something is changing!
Iko ward: Actually, CO, the way I see it is the whole planet is dancing around the Dinar and that is the only thing that isn't changing publicly, but it sure is bouncing around the back rooms.
Martha: think about this July 31st is the end of the month, it is also the "blue Moon"
Iko Ward: Martha, that might actually be more appropriate than "Chistmas". Aug 1st is the start of the new life on this planet, our new lives, and an appropriate underground holiday. Another way to ID Dinarians, people popping champagne at restaurants and crying TNT!
Martha: Iko I did a new posting but something did happen on the 25th-the new cards went international
Martha: Happy New Year!
Today maybe our lucky day, but just in case,I propose the fact that July 31st is the New Years. We know that Iraq is going international on the first of August and the international Bonds start on August 2,2015.
We also know that the parliament heads-President, prime minister, etc have voted a 50% pay cut BUT with a new rate this now, actually becomes a PAYRAISE!!!!
This year, on July 31st is the "Blue" moon which in reality won’t be blue this year but a strawberry color but a very important astrological feature. It is the 2 for one month but it is also a birth and a rebirth., a start and a re-start.
We had the star of Bethlehem last month and I’m not sure where the planets are this month except that this a good luck thing, I would think, thus I think we should have a New Year’s party on the 31st IF we are still here.
Remember this is still part of the puzzle as we go forward. Hopefully we will be completed by then but just in case, BE PREPARED for any time, any date. This is definitely coming this time. Tony is point on!!!!!!!
Topic: Character develops itself in the stream of life. Johann Wolfgang von Goethe
Mr Virtue July 28, 2015 at 1:42am Things are happening just the way they are supposed to---> IMF
Mr Virtue July 28, 2015 at 1:39am The trendline has been broken : ZH --->
MegaMeallionear July 27, 2015 UNDERSTANDING BONDS
Bond Basics: Introduction
By Investopedia Staff
The first thing that comes to most people's minds when they think of investing is the stock market. After all, stocks are exciting. The swings in the market are scrutinized in the newspapers and even covered by local evening newscasts. Stories of investors gaining great wealth in the stock market are common.
Bonds, on the other hand, don't have the same sex appeal. The lingo seems arcane and confusing to the average person. Plus, bonds are much more boring - especially during raging bull markets, when they seem to offer an insignificant return compared to stocks.
However, all it takes is a bear market to remind investors of the virtues of a bond's safety and stability. In fact, for many investors it makes sense to have at least part of their portfolio invested in bonds.
This tutorial will hopefully help you determine whether or not bonds are right for you. We'll introduce you to the fundamentals of what bonds are, the different types of bonds and their important characteristics, how they behave, how to purchase them, and more.
Bond Basics: What Are Bonds?
By Investopedia Staff
Have you ever borrowed money? Of course you have! Whether we hit our parents up for a few bucks to buy candy as children or asked the bank for a mortgage, most of us have borrowed money at some point in our lives.
Just as people need money, so do companies and governments. A company needs funds to expand into new markets, while governments need money for everything from infrastructure to social programs. The problem large organizations run into is that they typically need far more money than the average bank can provide.
The solution is to raise money by issuing bonds (or other debt instruments) to a public market. Thousands of investors then each lend a portion of the capital needed. Really, a bond is nothing more than a loan for which you are the lender.
The organization that sells a bond is known as the issuer. You can think of a bond as an IOU given by a borrower (the issuer) to a lender (the investor).
Of course, nobody would loan his or her hard-earned money for nothing. The issuer of a bond must pay the investor something extra for the privilege of using his or her money. This "extra" comes in the form of interest payments, which are made at a predetermined rate and schedule.
The interest rate is often referred to as the coupon. The date on which the issuer has to repay the amount borrowed (known as face value) is called the maturity date. Bonds are known as fixed-income securities because you know the exact amount of cash you'll get back if you hold the security until maturity.
For example, say you buy a bond with a face value of $1,000, a coupon of 8%, and a maturity of 10 years. This means you'll receive a total of $80 ($1,000*8%) of interest per year for the next 10 years. Actually, because most bonds pay interest semi-annually, you'll receive two payments of $40 a year for 10 years. When the bond matures after a decade, you'll get your $1,000 back.
Debt Versus Equity
Bonds are debt, whereas stocks are equity.
This is the important distinction between the two securities. By purchasing equity (stock) an investor becomes an owner in a corporation. Ownership comes with voting rights and the right to share in any future profits.
By purchasing debt (bonds) an investor becomes a creditor to the corporation (or government). The primary advantage of being a creditor is that you have a higher claim on assets than shareholders do: that is, in the case of bankruptcy, a bondholder will get paid before a shareholder. However, the bondholder does not share in the profits if a company does well - he or she is entitled only to the principal plus interest.
To sum up, there is generally less risk in owning bonds than in owning stocks, but this comes at the cost of a lower return.
Why Bother With Bonds?
It's an investing axiom that stocks return more than bonds. In the past, this has generally been true for time periods of at least 10 years or more. However, this doesn't mean you shouldn't invest in bonds. Bonds are appropriate any time you cannot tolerate the short-term volatility of the stock market. Take two situations where this may be true:
1) Retirement - The easiest example to think of is an individual living off a fixed income. A retiree simply cannot afford to lose his/her principal as income for it is required to pay the bills.
2) Shorter time horizons - Say a young executive is planning to go back for an MBA in three years. It's true that the stock market provides the opportunity for higher growth, which is why his/her retirement fund is mostly in stocks, but the executive cannot afford to take the chance of losing the money going towards his/her education. Because money is needed for a specific purpose in the relatively near future, fixed-income securities are likely the best investment.
These two examples are clear cut, and they don't represent all investors. Most personal financial advisors advocate maintaining a diversified portfolio and changing the weightings of asset classes throughout your life. For example, in your 20s and 30s a majority of wealth should be in equities. In your 40s and 50s the percentages shift out of stocks into bonds until retirement, when a majority of your investments should be in the form of fixed income.
Bond Basics: Characteristics
By Investopedia Staff
Bonds have a number of characteristics of which you need to be aware. All of these factors play a role in determining the value of a bond and the extent to which it fits in your portfolio.
Face Value/Par Value
The face value (also known as the par value or principal) is the amount of money a holder will get back once a bond matures. A newly issued bond usually sells at the par value. Corporate bonds normally have a par value of $1,000, but this amount can be much greater for government bonds.
What confuses many people is that the par value is not the price of the bond. A bond's price fluctuates throughout its life in response to a number of variables (more on this later). When a bond trades at a price above the face value, it is said to be selling at a premium. When a bond sells below face value, it is said to be selling at a discount.
Coupon (The Interest Rate)
The coupon is the amount the bondholder will receive as interest payments. It's called a "coupon" because sometimes there are physical coupons on the bond that you tear off and redeem for interest. However, this was more common in the past. Nowadays, records are more likely to be kept electronically.
As previously mentioned, most bonds pay interest every six months, but it's possible for them to pay monthly, quarterly or annually. The coupon is expressed as a percentage of the par value. If a bond pays a coupon of 10% and its par value is $1,000, then it'll pay $100 of interest a year. A rate that stays as a fixed percentage of the par value like this is a fixed-rate bond. Another possibility is an adjustable interest payment, known as a floating-rate bond. In this case the interest rate is tied to market rates through an index, such as the rate on Treasury bills.
You might think investors will pay more for a high coupon than for a low coupon. All things being equal, a lower coupon means that the price of the bond will fluctuate more.
The maturity date is the date in the future on which the investor's principal will be repaid. Maturities can range from as little as one day to as long as 30 years (though terms of 100 years have been issued).
A bond that matures in one year is much more predictable and thus less risky than a bond that matures in 20 years. Therefore, in general, the longer the time to maturity, the higher the interest rate. Also, all things being equal, a longer term bond will fluctuate more than a shorter term bond.
The issuer of a bond is a crucial factor to consider, as the issuer's stability is your main assurance of getting paid back. For example, the U.S. government is far more secure than any corporation. Its default risk (the chance of the debt not being paid back) is extremely small - so small that U.S. government securities are known as risk-free assets.
The reason behind this is that a government will always be able to bring in future revenue through taxation. A company, on the other hand, must continue to make profits, which is far from guaranteed. This added risk means corporate bonds must offer a higher yield in order to entice investors - this is the risk/return tradeoff in action.
Bond Basics: Different Types Of Bonds
By Investopedia Staff
In general, fixed-income securities are classified according to the length of time before maturity. These are the three main categories:
Bills - debt securities maturing in less than one year.
Notes - debt securities maturing in one to 10 years.
Bonds - debt securities maturing in more than 10 years.
Marketable securities from the U.S. government - known collectively as Treasuries - follow this guideline and are issued as Treasury bonds, Treasury notes and Treasury bills (T-bills). Technically speaking, T-bills aren't bonds because of their short maturity. (You can read more about T-bills in our Money Market tutorial.) All debt issued by Uncle Sam is regarded as extremely safe, as is the debt of any stable country. The debt of many developing countries, however, does carry substantial risk. Like companies, countries can default on payments.
Municipal bonds, known as "munis", are the next progression in terms of risk. Cities don't go bankrupt that often, but it can happen. The major advantage to munis is that the returns are free from federal tax. Furthermore, local governments will sometimes make their debt non-taxable for residents, thus making some municipal bonds completely tax free. Because of these tax savings, the yield on a muni is usually lower than that of a taxable bond. Depending on your personal situation, a muni can be a great investment on an after-tax basis.
A company can issue bonds just as it can issue stock. Large corporations have a lot of flexibility as to how much debt they can issue: the limit is whatever the market will bear. Generally, a short-term corporate bond is less than five years; intermediate is five to 12 years, and long term is over 12 years.
Corporate bonds are characterized by higher yields because there is a higher risk of a company defaulting than a government. The upside is that they can also be the most rewarding fixed-income investments because of the risk the investor must take on. The company's credit quality is very important: the higher the quality, the lower the interest rate the investor receives.
Other variations on corporate bonds include convertible bonds, which the holder can convert into stock, and callable bonds, which allow the company to redeem an issue prior to maturity.
This is a type of bond that makes no coupon payments but instead is issued at a considerable discount to par value. For example, let's say a zero-coupon bond with a $1,000 par value and 10 years to maturity is trading at $600; you'd be paying $600 today for a bond that will be worth $1,000 in 10 years.
Bond Basics: Conclusion
MegaMeallionear KEY = remember this...
When the price changes (RV happens), so does the yield (reflects the RV factor).
Let's demonstrate this with an example. If you buy a bond with a 10% coupon at its $1,000 par value, the yield is 10% ($100/$1,000). Pretty simple stuff.
But if the price goes down to $800, then the yield goes up to 12.5%. This happens because you are getting the same guaranteed $100 on an asset that is worth $800 ($100/$800)
. Conversely, if the bond goes up in price to $1,200, the yield shrinks to 8.33% ($100/$1,200).