The capital of a variable-rate bond is not guaranteed. But if some private companies may lead to a risk, it is not the same for borrowing launched by the State, which are the safest because in addition to benefit from the best ratings, they serve as a benchmark for interest rates.
Money invested in a variable rate obligation is always available. To retrieve just to sell its shares at any time. The variable-rate bonds are traded on the stock exchange and their rate is the rate of interest.
The remuneration of a variable-rate bond depends on an index of reference and the margin of the investor. These references are in principle based on the average rate on loans for State (MTCT), annualized (TMO) mandatory market rate or constant maturity rate (TEC). All these elements will be explained by your banker at the signing of countering matter of variable rate bonds.
Revenues from bonds and repayment premiums are taxable and must be marked on the statement of income taxes. They are subject to social security payments by 11%. You can also opt for the levy at source by 16%, plus the social security payments by 11%. But in the case of the levy at source, the Bank will hold 27% of the amount before the transfer to your account.
The variable-rate bonds may be sold before the term of the loan. In this case there is tax on added value only if the sum of the securities sold more than 15000 euros a year. Note that this only concerns non-payments and income of the action. This sum the capital gain is taxable at the fixed rate of 16%, in addition to social security payments by 11%.
Indexed bonds are a variant of variable rate bonds. Indeed, they depend partially or totally to a reference value which may be the turnover of the issuing company, the price of a product or even inflation. This form of variable-rate bond is a great success in the United Kingdom and tends to develop in France under the name flattening.
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