Any one know about BONDS? Please Help

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Jpcashflow
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@jpcashflow
Join Date: 2007
Post Count: 575
November 2, 2011 - 5:32 am
Hi Guys,
Hope every one had a great long weekend ( Melbourne CUP)
I have been looking at a few different tools to make money.
I have a couple of investments on the go but i ran into a thing called government Bonds.
Any one know how these work?
Any positives or negatives to buying bonds?
cheers
Jpcashflow | JP Financial Group
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Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
November 2, 2011 - 6:20 am
Hi Johann
Government Bonds are certainly not a new investment.
Your question is a wee bit opened ended.
Do you want to narrow down a little more to what you need to know.
I am assuming you understand what a Bond is and the mechanics behind them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
November 2, 2011 - 10:04 am
It’s pretty much a ” long term deposit ” – you give the government $x , and they give you a return of y %
The Bonds can be traded and sold but can not be “cashed in”.
Not to sure what the going rate/yield are for the Gov bonds.
But generally speaking company bonds pays much higher yield ~ 9-10% for 5-10 years hold…but your comparing a company to the Aus Gov:)
Regards
Michael
Mick C | Shape Home Loans
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Jpcashflow
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@jpcashflow
Join Date: 2007
Post Count: 575
November 2, 2011 - 10:19 am
hmm know how they work but have not realy heard of them
what other investment options are there
Jpcashflow | JP Financial Group
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Your first port of call in finance :)
Richard Taylor
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@qlds007
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November 2, 2011 - 12:30 pm
Other issue Michael is most Company PIBS have limited security (Usually ranking below A Class and Preference shareholders) so tend to trade at a higher rate of return than AAA Govt Bonds.
Currently for say the 6.25% coupon maturing Apr 2015 you are paying around 108.50 so well over par value.
Only reason i now was looking at the increase in Bond prices yesterday post the RBA interest rate announcement.
Of course you could always look at Italian Bond prices. They certainly had a nice rally over night lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
luke86
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@luke86
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Post Count: 470
November 2, 2011 - 10:51 pm
I hear Greek bonds are a great buy- I read that they are returning 25% for a 5 year bond. What could possibly go wrong?!?!?!?
Jpcashflow
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@jpcashflow
Join Date: 2007
Post Count: 575
November 3, 2011 - 12:10 am
LOL Greek and Italian bonds – Sounds like the best investment return out there at the moment
What can go wrong nothing
thre greeks dont pay taxes lol
Jpcashflow | JP Financial Group
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Your first port of call in finance :)
Mick C
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@shape
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November 3, 2011 - 12:52 am
Jpcashflow wrote:
LOL Greek and Italian bonds – Sounds like the best investment return out there at the moment
What can go wrong nothing
thre greeks dont pay taxes lol
And they have a history of not paying back their debt as well
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Same Banks. Better Rates. Served With a Passion.