electricchargesofionsareintegralmultiplesoftheelectroncharges. Thecohesiveforcesinthesecrystalsareelectrostaticforcesactingbetweenthe ions.Thistypeofbondiscalledanionicbondandthecrystalsarecalledioniccrystals. Astheelectricfieldofionsissphericallysymmetrical,theionicbondingisisotropic, i.e.,thebondsdonothave...
Also, keep in mind that bond prices and yields share an inverse relationship. When bond prices rise, yields fall, and vice versa. This is because the fixed interest payment of a bond becomes more attractive compared with the market when prices drop, increasing the yield. Conversely, if bond ...
Summary This chapter examines different types of bonds such as government savings bonds and price index bonds, focusing on the limitations on ownership of government savings bonds. The government savings bond is designed specifically for investors who are risk averse. However, as they are not ...
One of the key things to research when performing investment due diligence on a bond is to evaluate the bond’syieldor interest rate return. This evaluation of a bond’s yield, however, can be performed in several different ways and lead you to different conclusions. Furthermore, specific ty...
The maturity date of a bond is the date on which the issuer pays back the maturity value of the bond (which is typically equal to the face value) to the bondholder. In most cases, the maturity date is fixed but in some bonds such as callable, putable or convertible bonds, the ...
Bond Pricing Corporate bond prices are influenced not only by the issuer's credit rating but the general level of interest rates and the length of maturity, according to Pimco. Short-term bonds mature in five years or less; medium-term bonds mature in five to 12 years; long-term bonds tak...
In a layman’s language, bond holders offer credit to the company issuing the bond. Bonds generally have a fixed maturity date. All bonds repay the principal amount after the maturity date; however some bonds do pay the interest along with the principal to the bond holders. Types of Bonds ...
Primary Bond Market Vs. Secondary Bond Market Types of Bond Market Corporate Bonds Market Government Bonds Market Municipal Bonds Market Mortgage-Backed Bonds Market Emerging Countries Bonds Market Bond Market Strategies Active Strategy Passive Strategy ...
In addition, a bond with a longer maturity is more susceptible to interest rate changes than a bond with a shorter maturity, causing even greater changes in the municipal bond investor’s income. Furthermore, the majority of municipal bonds are illiquid; an investor needing immediate cash has ...
Some agency bonds have fixed coupon rates while others have floating rates. The interest rates onfloating rate agency bondsare periodically adjusted according to the movement of a benchmark rate, such asLIBOR. Like all bonds, agency bonds haveinterest rate risks. That is, a bond investor may ...