Fixed-Rate Bonds vs. Adjustable-Rate Bonds

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Fixed-Rate Bonds vs. Adjustable-Rate Bonds – This is a place for the community to provide tips and advice on Fixed-Rate Bonds vs. Adjustable-Rate Bonds. This topic was created by Bob Wood and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - Fixed-Rate Bond Definition | Investopedia

Published: 9 years, 4 month(s) ago | Submitted by Matty Karp | permalink

A bond that pays the same amount of interest for its entire duration. The benefit of owning a fixed-rate bond is that investors know with certainty how much interest they will earn and for how long. As long as the bond issuer does not default, the bondholder can predict exactly what his return on investment will be.
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For further reading: http://www.investopedia.com/terms/f/fixedrate-bond.asp ^[1]

Tip 2 - Floating-Rate Note (FRN) Definition | Investopedia

Published: 9 years, 4 month(s) ago | Submitted by Carol Burks | permalink

A note with a variable interest rate. The interest rate is usually adjusted every six months and is tied to a certain money-market index. Also known as a "floater."
Tags: fixed income,floating-rate note - frn,dictionary,glossary,education,investment,tutorials,investing,invest,investor,stocks,quotes,analysis,beginner,finance,financial,market,news,401k,ira,personal,definitions,terms,mutual funds,ipo,options,nasdaq,trader,trading

For further reading: http://www.investopedia.com/terms/f/frn.asp ^[2]

Tip 3 - Which is better, a fixed or variable rate loan?

Published: 9 years, 4 month(s) ago | Submitted by silvia Alongi | permalink

A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest).
Tags: loan,interest,rate,variable,fixed interest rate,variable interest rate,fixed rate loan,variable rate loan,amortization,mortgage

For further reading: http://www.investopedia.com/ask/answers/07/fixed-variable.asp ^[3]

Tip 4 - Puzzle for CFOs: Fixed or Floating-Rate Debt?

Published: 9 years, 4 month(s) ago | Submitted by knowxone | permalink

Faced with the threat of rising interest rates, plenty of chief financial officers are wrestling with the choice of issuing fixed- or floating-rate debt.
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For further reading: http://www.wsj.com/articles/SB10001424052702304856504579341300257842962 ^[4]

Tip 5 - A Fixed vs. a Floating Interest Rate

Published: 9 years, 4 month(s) ago | Submitted by parky li | permalink

Interest rates on bond investments and loans can be fixed, which never change, or floating. Whether one is better than the other depends on the specific situation. Unfortunately, it also requires a ...

For further reading: http://budgeting.thenest.com/fixed-vs-floating-interest-rate-10003.html ^[5]