Bonds - Introduction to Bonds
Bonds Debenture 1. A bond is financial instrument showing indebtedness of the issuing body towards its holder. 2. Its is secured by collateral 3. Low-interest rate 4. Issued by Govt Agencies, financial institutions, corporations 5. Accrued Interest 1. A debt instrument used to raise long term finance. 2. It can be secured or unsecured. 3. High-Interest rate 4. Public Companies 5. Periodically payments -------------------------------------------------------------------- Type Of Bonds Floating Rate Bonds 1st Year 10% 2nd Year 11% Fixed-Rate Bonds Inflation Index Bonds Option Bonds Bond with Call Option Issuer can redeem Bond with Put Option Buyer can redeem