What is Bond?

2025 оны 9 сар сарын 25 Нийтлэсэн admin

What is a Bond?

A bond is a fixed-income instrument that pays a fixed interest rate or coupon to its holders. It is considered the least risky type of investment.

Types of Bonds:

• Fixed-rate bond
  The issuer pays the bondholder a fixed interest at agreed intervals over a certain period of time.
• Zero-coupon bond
  Issued at a discount below its face value.
• Floating-rate bond
  The interest rate is determined in relation to key macroeconomic indicators.
• Callable bond
  Issued with a condition that the issuing company may repurchase the bond.
• Convertible bond
  At maturity, the bond can be converted into a certain number of shares.
• Puttable bond
  The investor has the right to require the company to repurchase the bond before maturity.

Bonds are also generally categorized into government bonds and non-government bonds, depending on the issuer.

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