What are Bonds?
Why Investment is Important ?
Every individual needs to put some part of his income into something which would benefit him in the long run. Investment is essential as unavoidable circumstances can arise anytime and anywhere.
One needs to invest money into something which would guarantee maximum returns with minimum risks in future. Money saved now will help you overcome tough times in the best possible way.
What are Bonds?
Bonds are issued by organizations generally for a period of more than one year to raise money by borrowing.
Organizations in order to raise capital issue bond to investors which is nothing but a financial contract, where the organization promises to pay the principal amount and interest (in the form of coupons) to the holder of the bond after a certain date. (Also called maturity date). Some Bonds do not pay interest to the investors, however it is mandatory for the issuers to pay the principal amount to the investors.
What is a Maturity Date?
Maturity date refers to the final date for the payment of any financial product when the principal along with the interest needs to be paid to the investor by the issuer.
Characteristics of a Bond
Types of Bonds
Following are the types of bonds:
- What is Bond Valuation ?
- Bond Market Conventions
- How Interest Rates Affect Bonds ?
- High Yield Bonds
- Covered Bonds
- Conditional Pass-Through Covered Bond
- What are STRIP Bonds?
- What are Sustainability Bonds?
- Pandemic Bonds
- Municipal Bonds
- What are Eurobonds?
- Portfolio Management Models
- Portfolio Revision
Authorship/Referencing - About the Author(s)
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