List of Bonds Articles

The coupon rate is the annualized interest amount. It is the percentage of the face value that a bond pays in one year.

Fixed income securities are everyone’s favourite while safe capital investing is the first preference. Although, they offer lower returns as compared to equity and other risky investment options.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

As businesses grow, so do their capital needs. Filing for an IPO is one way in which companies attempt to infuse massive funds into their company. An IPO or Initial Public Offering is the process by which a privately held company or a government entity raises money from the open market.

The bond market has flourished rapidly over time. There are varieties of bonds in the market and one of the less risky ones is government bonds.

Investing in bonds is considered among the best avenues of earning passive income. Bonds are debt instruments where an investor gives a sum of money to a government or corporate entity for a certain period (maturity period).

The coupon rate is the annualized interest amount. It is the percentage of the face value that a bond pays in one year.

Fixed income securities are everyone’s favourite while safe capital investing is the first preference. Although, they offer lower returns as compared to equity and other risky investment options.

As an investor, you will be paid interest during the life of the bond and receive the principal amount back at the end of the bond’s life (or maturity) or at the end of a dedicated period in which the interest amount is credited to your account.

Bonds are among the popular financial securities issued by the government and big corporations to borrow money from the general public.

A financial market facilitates the connection between fund seekers and investors. Mainly, there are four types of financial markets: Stock market, bond market, derivatives market, and currency market.

The potential for investment losses that arise due to a change in interest rate is categorized as Interest rate risk. If the interest rate rises, the bond value or the value of other fixed-income investments tends to decline.

Investors utilise the capital they have saved over time to start their journey in the Indian financial market.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

A coupon rate is the rate of interest paid on the face value of a bond, by the issuer, to the bondholder. Coupon rates are determined based on the prevailing market rate, and the creditworthiness of the issuer.