Your Questions About How To Invest In Bonds

Sandy asks…

What steps must I take if I wana start investing in stocks/bonds. How do I get started, I know its challenged.

I’m interested in investing-trade/stocks/bonds. What steps must I take if I wana start investing in stocks/bonds. How do I get started, I know its challenged.
Tell me how can I get started…schools..whatever available…the best…
Help me out…

John answers:

Try http://www.goldenbullstocks.com

Laura asks…

What are common demoninators of the super-rich?

I want to become wealthy by working smarter not harder.

I came up with 7 things that the super-wealthy do on a regular basis:

Low risk investments
Frugality
Keep cash reserves
Invest in stocks
Invest in bonds
Invest in real estate
They take risks

Can you name anything else?

John answers:

They take calculated risks on any investments. High or low risks. I am not sure about being frugal though. All i can say is that they practice good money management.

Daniel asks…

an investment of $8500 earned a net income of $515 in one year. part of the investment was in bonds and earned?

an investment of $8500 earned a net income of $515 in one year. part of the investment was in bonds and earned income at a rate of 8%. the rest of the investment was in stocks and lost money at the rate of 3%. How much was invested in bonds and how much was invested in stocks?

John answers:

An investment of $8500 earned a net income of $515 in one year. Part of the investment was in bonds and earned income at a rate of 8%. The rest of the investment was in stocks and lost money at the rate of 3%. How much was invested in bonds and how much was invested in stocks?
8N + 3(8500 — N) = 51500
Giving N = (51500 — 3*8500) / (8 — 3) = 5200
5200 in Bonds at 8% and 3300 in Stocks at 3% will give 515. ANSWER

Susan asks…

As an individual, retail investor how would I go about buying the bonds of WCI Communities?

Or for that matter, how do I buy the bonds of any company whose stock is publicly traded? And, how do I find out information on those bonds, such as price, covenants, the options on the bond, whether they are senior or subordinated, whether they are tied to collateral? Is there a place where this information is publicly available so that retail investors can do their research before deciding whether to invest in such bonds?

John answers:

Moody publishes bond information. It is perhaps available at your library. S&P publishes a bond guide monthly. It however does not give all the data you requested. I does give the price range at which the bond has been trading and the bond rating that S&P has assigned the bond if any.

How would I go about buying the bonds. I would call my broker and ask for a quote, yield to maturity, rating, and yield to call. He may not be able to give a quote if there are none being offered. Some bonds are very thinly traded.

Charles asks…

How would I Do This Word problem: Suppose that your long-lost Aunt Sara has left you an unexpected inheritance?

of $24,000. You have decided to invest the money rather than spend it on frivolous purchases. Your financial advisor has recommended that you diversify by placing some of the money in stocks and some in bonds. Based upon current market conditions, she has recommended that the amount in bonds should equal three-fifths of the amount invested in stocks. How much should be invested in stocks? How much should be invested in bonds?

John answers:

S = amount in stocks
b = amount in bonds
b=3/5 s
b+s=24000
3/5 s + s=24000
8/5 s = 24000
s=$15000
b=3/5 s = $9000

So, $15,000 should be in stocks and $9,000 should be in bonds.

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