Bonds
Sentinel Securities, Inc. offers a full range of fixed income investments including U.S. government securities, as well as municipal and corporate bonds.
U.S. Treasury Securities
U.S. Treasury Securities include treasury bills (T-bills), treasury notes (T-notes), and treasury bonds (T-bonds). These are direct obligations of the U.S. government. U.S. treasury securities are guaranteed for the timely payment of interest and principal if held to maturity, and they are considered low risk investments. Interest income for all treasury obligations is subject to federal taxes, but is generally exempt from state and local taxes. If treasury securities are sold prior to maturity, they are subject to market risk and the possibility of the loss of principal.
Tax-Free Securities
Tax-free securities include municipal bonds, municipal unit investment trusts (U.I.T.s) and tax-free mutual funds. They provide you with interest income that is generally exempt from federal taxes. Tax-free securities are sometimes exempt from state and local taxes, and may be a lower investment risk.
Corporate Bonds*
Corporate bonds generally have a fixed face value and will pay you interest semi-annually. While corporate bonds offer higher interest rates, there is more risk as it is based on the company's ability to pay.
These investment vehicles may present a lower risk to interest payments and principal. Your investment representative can help you determine if these investments belong in your portfolio.
Important Note: All fixed income securities are subject to market risk and interest rate risk. If fixed income securities are sold in the secondary market prior to maturity, an investor may experience a gain or loss depending on the level of interest rates, market conditions and the credit quality of the issuer.
In general, bond prices fall when interest rates rise, and vice versa. As a result a change market value could cause fluctuations in redemption price. You may have a gain or loss if you sell your bonds prior to maturity.
The tax-exempt funds being offered may be subject to state and local taxes. The tax-exempt funds offered may also be subject to the alternative minimum tax.
* Investments of this type are neither insured nor guaranteed by the Federal Deposit Insurance Company or any other U.S. government agency.