Bonds can be differentiated in the way they earn income for you. On one hand we have simple annual coupon bearing bonds that pay you interest on a fixed date every year till maturity; while on the other hand, we have cumulative coupon bonds which ensure that your interest too earns interest and pay you the final accrual at the [...]
The following article will guide you about determining the tax impact of your investment decision along with few important tips. 1. Interest: The interest that you earn on bonds and debentures is 'earned' every year. You may or may not 'receive' it every year depending upon whether that bond or debenture is cumulative or not. Usually, you pay taxes on [...]
List of Top 8 Fixed Income Products! Fixed Income Product # 1. Credit Default Swaps (CDS): Over the past few years, especially at the onset of the global economic recession, when people started to wonder as to what really went wrong, the CDS came into limelight. CDS is basically in the nature of insurance. It provides a protection to the [...]