Types of bonds are classified by the entity issuing them. Such entities include corporations, publicly owned utilities, and state, local, and federal governments. On the other hand, bond funds are mutual funds or exchange-traded funds (ETFs) that are a bundle of bonds. You can think of it...
Bonds DefinitionHow Does a Bond Work?Bond YieldOther Factors That Affect Prices and Coupon RatesWhy a Bond Price Might Sell at Premium or Discounted rates (Pro Tip)Bonds InvestmentTypes of BondsTreasury BondsBond ExampleWhat is a Government Bond?What is a Bond in Accounting?Bond FAQs Bonds De...
(2)Debenture 无抵押债券/信用债券 Debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Like other types of bonds, debentures are documented in an indenture...
Contract terms are normally found in the indenture, an agreement between the borrower and a trustee acting on behalf of the bondholders. Interest payments on bonds are known as coupon payments; before electronic interest payments made the coupon system obsolete, the bond purchaser received a series...
Bonds are financial tools used by governments, corporations, and municipalities to raise capital. There are different types of bonds that serve different purposes. We can help guide you through how bonds work, so you can make smart choices about using bonds in your investments. ...
bonds5.Bondpricing6.Relationshipbetweenpriceandyield7.Yieldmeasures41.Characteristicsofbonds•Parvalueorfacevalue•Couponrate•MaturitydateExample1:A10-yearbondwithaparvalueof$1,000,andacouponrateof6%paidsemiannually.Example2:A10-yearzerocouponbondwithaparvalueof$1,000.52.Typesofbonds•TreasuryBonds...
other types of bonds, debentures are documented in anindenture. Debentures have extra risk and ...
other types of bonds, debentures are documented in anindenture. Debentures have extra risk and ...
Types of Municipal Bonds A municipal bond is categorized based on the source of its interest payments and principal repayments. A bond can be structured in different ways, offering various benefits, risks, and tax treatments. Income generated by a municipal bond may be taxable. For example, a...
Both bond funds and bond ETFs can offer suitable investment opportunities, but their appeal will depend on your personal investment goals, risk tolerance, and the specifics of your financial strategy. Bond fundsstand out for those seeking diversified exposure across various types of bonds, such as...