March 03, 2025
Key Features of Bonds
Below are key features of Bonds
1. Issuer – The entity that borrows money (e.g., government, corporation).
2. Face Value (Par Value) – The amount the investor will receive at maturity (e.g., $1,000 per bond).
3. Coupon Rate – The fixed or variable interest rate paid to bondholders.
4. Maturity Date – The date when the bond's principal is repaid.
5. Yield – The return on investment based on the bond’s price and coupon payments.
6. Credit Rating – Issuer’s creditworthiness assessed by rating agencies (e.g., Moody’s, S&P).