How much income tax do you pay on bonds?

Answer If a bond generates income in the form of interest or dividends, this amount is taxed at the normal income tax rate. For example, for an individual in the top tax bracket, 35 percent of the bond in... Read More »

Top Q&A For: How much income tax do you pay on bonds

Does issuing bonds at a premium assure a favorable impact on cash flow&income?

On One Hand: Premium Bonds Raise More Capital Initially.Issuing bonds at a premium is a way to maximize the amount of capital received upfront, and has a positive effect on cash flow and net income... Read More »

Are i series savings bonds a better investment than ee bonds?

On One Hand: High InflationDuring times of inflation, I series bonds provide more inflation protection and a higher return than EE Bonds. EE bonds earn a fixed rate over the course of 20 years, whi... Read More »

Are high-yield bonds better than regular bonds?

On One Hand: Higher Risk.High-yield bonds are bonds that have been rated BB or lower, and they are often referred to as speculative or junk bonds. Regular bonds, called investment-grade bonds, have... Read More »

How Would a Yield Curve Change if People Prefer Short-Term Bonds Rather Than Long-Term Bonds?

Bonds are a type of fixed-income security. However, the return you earn from the bond is influenced by the length of time until maturity. This return is known as the yield. Bonds come in various si... Read More »