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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
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  • IPO News

Joydeep Sen The impact of the revised norms on returns from liquid funds would not be huge.
Mon, 04 Mar 2019 09:40:54 +0530


Subscribe to Embassy Office Parks REIT: Choice Broking Choice Broking has come out with its report on Embassy Office Parks REIT. The research firm has recommended to "Subscribe" the IPO in its research report as on March 16, 2019
Mon, 18 Mar 2019 16:19:20 +0530


Subscribe to Embassy Office Parks REIT: ICICI Direct ICICI Direct has come out with its report on Embassy Office Parks REIT. The research firm has recommended to "Subscribe" the IPO in its research report as on March 18, 2019
Mon, 18 Mar 2019 15:54:32 +0530


Embassy Office Parks REIT IPO opens: 10 things you should know Post the utilisation of the IPO proceeds, its total indebtedness is expected to be less than 15 percent of market value initially.
Mon, 18 Mar 2019 10:16:49 +0530


Embassy Office Parks REIT raises Rs 1,743 cr, Radhakishan Damani among anchor investors Ace investor and Avenue Supermarts#39; owner Radhakishan Damani and his brother are among Indian investors, who invested Rs 160 crore against 53.36 lakh shares in Blackstone-backed company, through their five trusts
Sun, 17 Mar 2019 16:45:10 +0530


Subscribe to MSTC Ltd: Choice Broking Choice Broking has come out with its report on MSTC Ltd. The research firm has recommended to "Subscribe" the IPO in its research report as on March 12, 2019
Fri, 15 Mar 2019 12:03:33 +0530


State-owned MSTC#39;s Rs 226-cr IPO opens today; should you subscribe? The company will get the first mover advantage on account of domain expertise in providing e-commerce services thereby helping to boost its business. It has a robust, advanced and scalable technology platform.
Wed, 13 Mar 2019 10:07:57 +0530


Neogen Chemicals gets Sebi#39;s go ahead for IPO With this, the total number of company getting Sebi#39;s clearance for the public issues -- initial public offer (IPO) and follow on public offer (FPO) -- has reached to seven, so far in the new year.
Tue, 12 Feb 2019 11:25:06 +0530


Reliance General Insurance files for IPO The IPO will also include an offer by Reliance Capital to sell up to 79.5 million shares, Reliance Capital said.
Tue, 12 Feb 2019 10:30:01 +0530