I think written a little bit on the upper limits and how to purchase the Singapore Savings Bonds a few days ago. The special unique feature of the Singapore savings bonds is the ability for the bond investor to redeem the bond at par value, with no loss to principal.

For those who are not aware, the general bonds can be usually traded, or bought and sold once they are issued. Their prices will go up and down and the investor can buy and sell them.

The prices of bonds changes based on a few factors but one of the biggest influence is the interest rate.

When the interest rate of newly issued bonds go up, it makes the bond you hold now to pale in comparison, and for this bond you hold to be competitive, you can only sell at a lower price. When interest rate of newly issued …