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While many investments provide some form of income…d in addition to the interest they have received.
Stability of principal: One advantage of investing…ion and thus assist in portfolio risk mitigation.
A bond is a fixed income instrument that represent…ders along with the principal amount at maturity.
A bond pays interest periodically and repays the principal at a stated time, known as maturity.
Coupon rate is the periodic rate of interest paid …ter what happens to the bond price in the market.
Yield to maturity (YTM) is the total return antici…coupon) divided by the current price of the bond.
The interest on bonds, except tax-free bonds, is t…lifying period is 12 months instead of 36 months.
A coupon is the fixed interest rate paid to the bo…time, expressed as a percentage of interest rate.
A bond option is a contract that gives an investor…fit on favorable, short-term movements in prices.
A perpetual bond is a bond with no fixed maturity …herefore calculated up to the earliest call date.
The bond market is regulated by RBI & SEBI.
Most of the bonds are traded over-the-counter betw… the bonds are traded publicly through exchanges.
Face value is the amount the investor will get bac…om issue to issue and is dependent on the issuer.
A bond can be secured or unsecured. Secured bond p…This asset is also called collateral on the loan.
Not all bonds carry a specific guarantee. However,…arty, or the government/government-owned company.
The bond issuance process varies based on bond typ…nds are issued through the RBI auction mechanism.
Most bonds are listed on stock exchanges (BSE/NSE)…isting unlike bonds issued by corporate entities.
Day count convention is to determine the number of… There are 4 different conventions-
Accrued interest is the interest on a bond that ha…held is called the holding period interest (HPI).
In the case of corporate and government bonds, int…directly by the issuer on interest payment dates.
The bond price is determined by discounting the ex…o-maturity, credit ratings, and economic factors.
A bond rating is a way to measure the creditworthi…too typically real estate structured obligations.
Minimum investment amount ranges between Rs. 10,000 to Rs. 10,00,000 depending on product type.
You can use your existing Demat account for investing in bonds.
Rates shown on the system are indicative rates and… is subject to change based on market conditions.