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 |
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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 |
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