Category: Basics
-
About Bonds risks, credit risk and interest rate risk
by
–
What are the risks associated with bonds? Bonds are long-term debt securities issued by entities – including corporations, states, cities, […]
-
What is Maturity related to bonds?
by
–
Introduction Bonds are debt securities that obligate the issuer to make periodic interest payments (coupons) to bondholders and to repay […]
-
Interest Payments on Bonds: Everything You Need to Know
by
–
Introduction Bond interest payments are generally made twice a year, and are paid to the bondholder on the coupon payment […]
-
What is simple interest related to bonds?
by
–
Introduction When you buy a bond, you are lending money to the issuer, who agrees to pay you back the […]
-
Basis points (bp) related to bonds
by
–
What is a basis point? Basis points (bps) refer to the percentage change in price or yield of a financial […]
-
Credit rating related to bonds
by
–
Introduction A credit rating is a symbol assigned to a debt instrument by one of the major credit rating agencies […]
-
What is Interest accrued
by
–
What is interest accrued Interest is money that a person or organization owes for money that they have borrowed. It […]
-
What is Duration related to bonds?
by
–
Introduction Bond duration is a measure of a bond’s sensitivity to changes in interest rates. It is often used as […]
-
What is Principal related to bonds?
by
–
Introduction When a company raises money by selling bonds, it’s important to remember that there are two types of risks […]
-
What is a bond Coupon?
by
–
Introduction A bond coupon is the annual interest payment made by the issuer of a bond. The coupon rate is […]
-
Compound interest with bonds
by
–
Introduction Compound interest with bonds is when you reinvest your interest payments back into the bond, so that your investment […]
-
Bond Insurance Definition
by
–
Introduction Bond insurance is a type of insurance that protects the holder of a bond from loss in the event […]