How is floating rate note related with bonds?
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franzen
Apprentice
Joined: 13 May 2005
Posts: 2
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 Posted: 07/28/08 - 06:46 Post subject: |
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| Good morning everybody! My name is Mario and I was wondering if you could tell me something about bonds. I am pretty much interested in buying them, but I need to have some more information before I do anything. I would like to know this: how is floating rate note related to bonds? Thank you. |
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lyle
Apprentice
Joined: 22 Oct 2005
Posts: 2
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| Posted: 08/26/08 - 21:13 Post subject: |
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| Hi there Mario. First of all, let me tell you that I think it’s great that you want to invest in bonds. I did the same couple of years ago and I am so far very satisfied. The best thing is that they are less risky than stocks, for example. Floating rate note is actually one type of bonds. The thing is that these bonds have variable coupon which is paid to the owners quarterly. It means that you can expect your interest every three months. Main issuers of floating rate notes are banks. There are also some sub-types. Some of them have capped coupons for example. That is all I can tell you. I hope that you will choose to invest in this type of securities. Bye! |
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