Posted on 13 October 2009
Tags: bond holders, bond issuer, bonds, call date, callable bond, Characteristics of the call date, Interest Rates, investment, maturity date
A call date has to deal with the redemption of a callable bond. Essentially, the earliest possible date at which the issuer of the bond may redeem the bond is referred to as the call date. The call date is different from the maturity date on callable bonds, in that way that call date takes place at some point before the stated date of maturity that is specified in the terms and conditions surrounding the bond issue.
Characteristics of the call date
One of the characteristics of the call date is that before the bond issuer is likely to exercise an early redemption certain conditions must be present. First condition is that, call dates may be extended to bond holders only when the interest rates fall. When this has happened then to gather in the bonds, honoring them at the old rate of interest, then immediately issuing new bonds at the new and lower rate of interest becomes in the best interests of the bond issuer.
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Posted on 10 October 2009
Tags: bank CD, Certificate of Deposit, financial security, interest-bearing period, investor, maturity date, savings account
The bank CD, or certificate of deposit, is a simple but useful means of creating financial security for the future. Being a money market instrument, the rate of interest that is earned on a bank CD is based on current money market rates. The bank certificate of deposit is considered by many people to be among the safest investment opportunities that are available today.
How to setup a bank CD?
To setup a bank CD a person has to deposit money into a special account with a banker. Until a pre-determined maturity date is reached this deposit remains in the account. The bank applies a specific or fixed rate of interest to the funds deposited in return for leaving the money in the CD account until maturity is reached.
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