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13991522 No.13991522 [Reply] [Original]

I have 30 year US treasury bonds will the interest rate I bought them at stay the same when I cash it in if the Fed moves rates around?

>> No.13991540

>>13991522
No. Which is why it will lose value when the Fed raise the rates. It's counterintuitive, but logical if you think about it.

>> No.13991541
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13991541

>>13991522
>he thinks he will get something back once his 3rd world country collapses

>> No.13991553
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13991553

>30 year US treasury bonds

>> No.13991582

>>13991540
wat

>> No.13992628

>>13991553
that's a brutal, yet creative, way to end it all

>> No.13992768

>>13991522
The Coupon Rate will stay the same (the amount periodically paid to the Bond Holder). But the Yield to Maturity will change, depending on how the price of 30yr bonds have changed, since the time you bought your bond.

Prices of longer term bonds tend to change based on inflation expectations. As bond prices increase, YTM decreases (and vice versa).

>> No.13992799

>>13991553
Imagine posing for this and your foot slips

>> No.13993486

>>13992768
This came off as a bit confusing, so let me clarify: Neither your Coupon Rate, or your YTM will change, so long as you hold on to your Bond.

YTM changes for Bonds as their prices change (in response to things like inflation expectations).

But, once you buy a Bond, and hold it till Maturity, that YTM will remain the same.

>> No.13993521

>>13991522
How do you cash out 30 years bonds? Is it possible after 30 years only?

>> No.13993680

>>13993521
How Bonds work is that whoever is holding the bond at maturity will receive a Principal repayment from the Issuer of the Bond.

A Bond is essentially a loan, and the Issuer is "repaying" what was borrowed to whoever holds the Bond at Maturity.

If you're holding onto a Bond with a Par value (aka Face value) of $100, you will 'cash out' at Maturity by receiving $100 from the Issuer of the Bond. You'll also have receive the Coupon Payments while holding the Bond, till maturity (assuming it's a Coupon paying Bond).

You can decide to sell the Bond before Maturity, and not wait for the Issuer to pay you the Par value.

But there are a lot of things that impact Bond pricing on the Market, at a given time:
- Have inflation expectations changed?
- Have the Fed changed short term rates?
- Did you originally buy the Bond at a Premium or Discount?
- How long until the Bond matures and how many Coupon payments does it have left?

>> No.13993683

>>13992799
Kek

>> No.13993714

>>13991522
Should have just lit your money on fire tbqh