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Bonds – Getting Your Feet Wet

October 17, 2012 7:09 pm GMT+0  in Bond

                  Investment in Bonds: Now we have picked up the basics of bonds and understand the risks involved, it’s time to get your feet wet and invest in bonds either directly or through a bond fund. Here are a few points you should keep in mind beforeRead the Rest…

Bond Risks

October 13, 2012 6:03 pm GMT+0  in Bond

If you thought bonds were fail-safe and risk-free, please think again. The fact is that bonds too, like most other investments, are subject to risks; however, the kind of risk, or its degree, may vary. Bond Default Risk Bond default risk is the risk one runs that the issuer of the bond may not beRead the Rest…

Bond Yield and Yield to Maturity

October 4, 2012 11:49 pm GMT+0  in Bond

Bond yield is nothing but the return on bond investment. So suppose we buy the bond at the time of issue at a issue price or face value of 100 USD and the annual interest offered on the bond is 10% then our annual return or annual coupon value would be USD 10. The currentRead the Rest…

Bond – Interest Rate and Inflation

October 4, 2012 11:10 pm GMT+0  in Bond

Bonds are issued at a par value (face value) by the issuer and the investor gets the returns on his investment by the coupon value depending on the offered interest rate. The interest rate offered on bond would be more than the key interest rate or benchmark rate and that would be the only reasonRead the Rest…

Types of Bonds

October 2, 2012 6:47 am GMT+0  in Bond

Before we talk about different types of bonds, let’s take a look as to what are the possible variables associated with a bond. Logically the variables which can define the types can be as follows: Who Issues the bond Tenor or maturity period  Interest Rate Interests rate and principal amount payment options   1) TypeRead the Rest…

Bond Terminology

September 30, 2012 1:37 pm GMT+0  in Bond, Investing

Now when we have covered the basics i.e. “What are Bonds”, before we move further, let us try to see what are the common Bond terminologies or common terms related to bonds. Basically if we see the complete cycle it is as follows: 1) Purchase the bonds when those are issued. 2) Get the yearlyRead the Rest…

What Are Bonds?

September 27, 2012 7:53 am GMT+0  in Bond

This question i.e. “What are bonds” started popping up a lot recently from people who have not been exposed to bonds. Who says that crisis situations do not have any positive side? The debt crisis in Greece and Spain etc and ECB’s plans for unlimited bond purchase has been the reason that the otherwise notRead the Rest…