Michael J Porro & Company

Financial Advisors, LLC

180 Old Tappan Road, Old Tappan, NJ 07675-7052

Phone: 201-768-0218

Fax: 201-768-6487

Website: porrofinancialadvisors.com

May/June 2018

Notes, Bills and Bonds

Article Image

Bonds aren’t the only type of fixed-income investing. In the world of debt instruments, bonds, bills and notes differ by their maturity, or when they pay interest.

Bonds

Bonds mature in one to 30 years. A long-term bond matures in 10 or more years, intermediate-term bonds go from four to 10 years and short-term bonds mature in one to four years. The longer the maturity, typically the higher the interest rate.
Notes

Notes maturity dates are similar to those of intermediate and short-term bonds. They typically mature in one to 10 years.
Bills

Bills mature in one year or less. They typically offer the lowest interest rate return.
Interest Rates

If you own any of these debt instruments and interest rates rise, your investment could be worth less because it has a lower interest rate. Bills, with their short terms, are considered less sensitive to interest rate changes. They turn over quickly. Conversely, long-term bonds are the most affected when rates change.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Michael J Porro & Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.