Bonds

                              -------BONDS----------                                

What is bond?

ANS: It is a long term debt obligation where the bondholder get interst, and at maturity the bondholder get the princpal amount.

Who issues bonds?

ANS: Primary investors are institutional investors such as commercial banks, bond mutual funds, pension funds, and insurance companies. 

Maturities of Bonds?
ANS: Most bonds have maturities of 10 to 30 years.

What types of Bonds are there?
ANS:

• Fixed Rate Bonds
• Convertible Bonds
• Floating Rate notes
• High Yield Bonds
• Zero Coupon Bonds
• Inflation Linked Bonds
• Discount Bonds
• Asset Backed Securities
• Perpetual Bonds
• Municipal Bonds

Terms used in BONDS

1. Coupon Rate
2. Face/Par/Maturity value
3. Maturity

What are the characteristics of Corporate Bonds?
ANS: 

• Sinking Fund Prvision
• Protective Covenants
• Call Provision
• Bond Collateral
• Low and Zero Coupon Bonds
• Variable-Rate Bonds
• Convertibility