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  • Mutual Funds

    When it comes to the world of investing, three words come to mind: overwhelming, intimidating, and scary.

  • Financial Planning

    In finance, investment is putting money into an asset with the expectation of capital appreciation.

  • Time for changes

    Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.

  • Solution

    The stock market is filled with individuals who know the price of everything, but the value of nothing.

FD BOND

If you follow the bond market, you can observe that prices of bonds are generally decreasing when the economic news are good and increasing when negative. An understanding of this typical valuation of bonds can explain the phenomena.
After reading this document, you will know how bonds are defined, valuated and traded. There are ts to bondholders makes bonds a good and safe investment: investors get fixed amounts of incomesfundamental factors that generate fluctuations in prices of bonds. knowing these factors leads to a better understanding of the underlying economic forces together with the valuation of bonds.

Main features of bonds

A bond is a negotiable debt security under which the issuer borrows a given amount of money, called the principal amount. In exchange, the borrower agrees to pay fixed amounts of interests, also called the coupons, during a specific period of time. Everything is well defined by the bond contract: the coupon rate is the interest rate that the issuer pays to the bondholder and the coupon dates are the dates on which the coupons are paid. Besides the issuer will repay the total amount of the principal when the bond will reach what is called maturity (or maturity date).

In short, a bond is a securitized loan.
First, we can mention the most relevant point that makes bond so attractive, especially in gloomy periods for stock markets. Indeed, the regular payments of interes and are repaid the principal value at maturity date. Bonds with maturity of one year or less are referred to as short-term bonds or debt.
Bonds with maturity of one year to ten years are referred to as intermediate bonds or intermediate notes. The long-term bonds are issued with a maturity of at least ten years and commonly up to 30 years.
A second important aspect is that all characteristics of bond are well defined in advance and the market offers different choices for each of them: coupon rate (also called coupon yield), coupon date, maturity date can vary from one bond to another but are known when investing into the given bond. It allows the investor to fit its investment strategy with its risk and return acceptable levels.

Market Watch
  • MF News
  • IPO News

How do mutual funds help you to invest better? Mutual funds can provide you products that can meet your financial goals with relatively lesser risk.
Fri, 26 Oct 2018 08:36:58 +0530


Neogen Chemicals files IPO papers with Sebi The initial share sale comprises fresh issuance of shares aggregating up to Rs 70 crore and an offer for sale of up to Rs 29 lakh by the company#39;s promoters, according to the draft red herring prospectus (DRHP) filed with Sebi.
Tue, 06 Nov 2018 18:26:14 +0530


PNB MetLife gets Sebi#39;s go-ahead for IPO The insurer, which had approached the regulator in July seeking its clearance to launch IPO, obtained Sebi#39;s "observations" on November 2, as per the latest update with the market watchdog.
Mon, 05 Nov 2018 17:17:04 +0530


Penna Cement files Rs 1,550-cr IPO papers with Sebi The IPO comprises fresh issuance of shares worth up to Rs 1,300 crore, besides, an offer for sale of up to Rs 250 crore by company#39;s promoter PR Cement Holdings, according to the draft red herring prospectus (DRHP) filed with Sebi.
Mon, 05 Nov 2018 15:40:04 +0530


AGS Transact Technologies gets Sebi#39;s go-ahead for Rs 1,000-cr IPO The company, which had filed its draft papers with Sebi in August seeking its clearance to float an initial share-sale, obtained its "observations" on October 26, latest update with the markets watchdog showed.
Tue, 30 Oct 2018 13:12:06 +0530


Bharat Hotels, Spandana Sphoorty get Sebi#39;s go-ahead for IPO Bharat Hotels and Spandana Sphoorty obtained the regulator#39;s "observations" on October 12, latest update with Securities and Exchange Board of India (Sebi) showed.
Wed, 17 Oct 2018 13:34:05 +0530