List of Bonds Articles

Bonds have become one of the most effective financial instruments to offer regular income to the holder without a massive risk of losing the principal amount.

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

The maturity date refers to the date when the principal amount of an investment, such as a bond, note or other debt instrument becomes due and is repaid to the investor.

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.

NCDs are unsecured debt securities. Investment in them could offer good diversification to those who also invest in equities. NCDs of investment grade issuers are also a secure form of investment.

Bonds have become an ideal investment instrument for investors who do not want to put all of their eggs in one basket.

When the government or corporate requires funds, they may consider issuing bonds. They are financial instruments which raise funds from the general public for a specific period.

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.

Investors diversify and ensure they have uninterrupted profits in every stock market scenario. Starting with equities, they move to the debt instruments such as bonds, where they know they will receive returns through a coupon rate or value appreciation.

SLBM refers to the Stock Lending and Borrowing mechanism that allows a trader to borrow shares that they do not already own or lend stocks and shares that form a part of their portfolio.

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.

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 recent rate hike by the Reserve Bank of India has led to the increased popularity of the bond market. Zero-coupon, convertible, and inflation-linked bonds are among the various bonds traded in the bond market.

Though issuing equity is a popular way for organizations to raise money, some organizations consider issuing debt securities, too.

Discover the key reasons to invest in short-term bonds in 2025. Learn about their benefits, such as lower risk, liquidity, and stable returns in an uncertain market