Bonds are major components of the global financial system and offer investors a relatively stable source of income. However, investors will not make intelligent decisions on adding bonds to their... Read More
Author: FINXL12
Some of the bonds, especially those issued by small companies or less common governments, might not be very liquid since they cannot be easily traded. This may mean that when... Read More
The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond and vice... Read More
Yield is the expected return on investment of a bond. It is usually expressed as a percentage value and can be determined in one of several ways. There are two... Read More
Face value, or par value, is the amount the issuer promises to pay the bondholder at maturity. It is usually issued in denominations of $1,000 but may be other denominations.... Read More
A bond is essentially a loan that an investor provides to the borrower, which may be a corporation or government. In return for this loan, the issuer promises to pay... Read More