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Question
I have a CD bond starting at 5,000 through Eastern Bank and I was wondering how often does the bond value increase over 5yrs. PLEASE HELP ME!!!!
Typically CDs don't change in value.
They have a coupon that pays you interest either monthly, quarterly, semi-annually, annually, or at maturity. For each day that goes by, you do earn another day of interest, so it is worth more each day, but the par value stays the same.
They usually have a stated final maturity and a substantial penalty for early retirement.
You can take it to or call the bank for more information.
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | My father had recently pasted away,and thats what was left for me and I wanted to basically know how they work.u helped.Thank you | ||
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Doug Ingram
Expertise
Fixed income portfolio allocation and strategies for institutional investors. Having designed multi-scenario risk quantification and cash flow projection models for nearly 25 years, Strategic Technical Initiatives can answer your regulatory, SFAS 115 allocation, securities selection, and other questions dealing with yield curve placement and portfolio mix strategies. I write the Bond Market Review on behalf of Commerce Street Capital Management.
Experience
Trading and designing portfolio strategies since 1980.
Education/Credentials
Physics and Differential Mathematics
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