Investment Opportunity Essay Example for Free

Investment Opportunity EssayWhat is the interest rate or verifier rate?The stockbroker has already given us the answer to this and it is already very appealing.What is the tie price?The give tongue to bond price refers to the cost of bribe or adornment in the bond issue. This part of the hesitation should also include elaboration of the yield to maturity period. The referred yield to maturity of a bond is the pass judgment rate of return until the bond matures.What is the bonds credit quality, its rating and is it insured?The credit rating of a bond is an initial indicator of the views of the market place considering the position of the issuers ability to repay interest and teaching on a timely basis. It is very convenient to be aware of the type of bond you urgency to invest in, that is, an investment grade bond or high yield If the bond is insured, there is cover that the investors will be indemnified for their principal amount and interest should the Yubetchyu state default. Investors are also privileged to purchase insurance on purchases of secondary market bonds.What is the evaluate status?Different types of bonds have different assess status. Interest income from the United States for example is exempted from state and also local taxes. The stock broker should expound on whether the Yubetchyu state is likely to drop state and local income taxes.What is the tax break worth?There should be the ample consideration of the tax break worth. This is mostly determined by the state you are in and your income tax bracket. It is therefore advisable to consult from financial professionals before investing in areas carrying out tax implications.What is the actual yield after my broker has taken his commission and fees?Calculations of the total yield should be make with relevance to deductions. It is calculated as followsAnnual Interest Price = Yield, this however does not reflect fees charged on the brokers commission or the overall accomplishment . This is rather calculated as a percentage of the sales.What is the transaction type of the bond?Before purchasing a bond, it is important to know whether the bond is being offered for the prime(prenominal) time or not. New issue bonds are more likely to prove difficult to invest in since the competition is against institutions and professional investors.Finally how credible is my advisor?Is he a registered one and if so, how commodious has he been working in the field of investing in bonds for clients. By asking these questions, you determine what mixed bag of investment advisor you are associating with.