Bonds are commonly known as fixed income and is one of the three classes of asset, with the equivalent of a stock of cash.
A bond of the indebted entities expressed interest rates to pay and when returned loans funds. Interest on bonds which are usually paid semi-annually (every six months). The main categories of obligations are obligations of companies, municipal bonds and the good United States of Treasury notes and bonds, which are collectively referred to as just "cash".
Credit quality of two binding features - and duration - is the key determinants of bond interest. Bond maturities range from the bonds of 90 days for the obligations of the Government for 30 years. Corporate and municipal is generally of the order of three to ten years.
In finance, a bond is a debt obligation, in which the issuer has the holders a debt and official, according to the needs of the bond, is obliged to pay interest or pay the principal at a later date, called maturity. The binding is the formal contract to repay the money borrowed with interest at fixed intervals.
A bond is like a loan: the issuer is the borrower (debtor), the holder of the lender (creditor), and the interest coupons. Bonds provide the borrower with external funds to finance investments in the long term, or, in the case of government bonds, to finance current expenditure. Certificates of deposit and commercial paper money market instruments are considered and not bonds.
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