Month: September 2021

Issuers often call preferred bonds in low-interest rate environments so they can reissue a stock that pays a lower dividend. Common stock has higher long-term growth potential but also has lower priority for dividends and a payout in the event of a liquidation. Lenders, suppliers and preferred shareholders are...

If you mark this box, the IRS will not send you any further notices about this account. As the bond reaches maturity, the premium will be amortized over time, eventually reaching $0 on the exact date of maturity. A bond trading for less than 100 would be priced for...