Governments or corporations issue bonds to raise funds for specific purposes. Bonds offer regular interest payment at predetermined intervals and return of the principal amount at the end of the maturity period. Deep discount bonds are offered at a much lower face or par value. These bonds offer a return greater than the amount received …
Deep Discount Bonds: Working, Calculation and Example Read More »
Many individuals find bond funds efficient to invest in rather than buying securities separately. These funds help an investor earn monthly income. To learn more about a bond fund, its types, examples, benefits, and more scroll through this page. What Is a Bond Fund? A bond fund also known as a debt fund is used …
Inflation-indexed bonds or Inflation bonds are issued by the government and are one of the safest investment options for individuals who want to protect their funds from inflation. When high inflation erodes the profit, bonds like inflation-indexed bonds safeguard one’s investments. What are Inflation Bonds? The Government introduced inflation-indexed bonds or IIBs for the first …
A surety is an agreement that one party makes with a promise to comply, pay financial obligation/s, or, perform or refrain from a specific task. A surety bond is a three-party contract where surety guarantees obligations of principal to obligee. To know more about surety bonds go through this blog. What Are Surety Bonds? Surety …
As you already know, bonds are fixed-income instruments that are issued by governments, corporations and similar bodies to fund big projects. These might include expansion and maintenance of railways, power plants and construction of affordable housing facilities. Bonds are high-security debt instruments that are categorised under fixed income asset class. They come with a maturity …
What is a Tax-Free Bond – Its Types and How to Invest? Read More »
Learn more about Gold Bond Investment in India – benefits, drawbacks and how to buy them.
Municipal bond markets in India initially faced challenges despite decentralization efforts. However, recent progress suggests a potential upside. Between 2017 and 2022, Rs. 3,840 crore was raised through municipal bonds. Despite this, grant aid remains the primary method of financing city projects. Municipal bonds offer a safe investment option as they are backed by the …
In today’s financial landscape, bonds are a popular investment avenue, serving as a means for an issuer to raise funds and offering a fixed income to investors in return for the capital invested. There are several types of bonds, categorised according to various aspects. Callable and non-callable bonds are two common types of bonds, categorised …
With an aim to raise capital for green infrastructure projects, the finance minister announced in the February 2022 Budget that the government will be issuing sovereign green bonds. These securities will help finance renewable energy projects, which will facilitate India’s transition to clean energy and achieve its goals of net-zero carbon emissions by 2070. If …
Sovereign Green Bonds – Framework and Comparison Read More »
When it comes to fixed-income securities, bonds are the first choice of most investors. These assets come with a long-term investment horizon and generate interest at a fixed rate. However, to make an informed choice while purchasing bonds, understanding bond coupon rate is essential. Keep reading to learn more. What Is Coupon Rate in Bonds? …
A bond is a debt investment where the investor lends money to a company or government and earns interest. Yield curve analysis is essential for predicting the interest and profit of bonds. Understanding these curves helps in making informed investment decisions for maximum returns. This blog discusses the types of yield curves, their meaning, their …
Yield Curve: Working, Types and Impacting Factors Read More »
A bond market, also known as a debt market, stands out as one of the largest securities markets in the world, offering a wide range of investment options. There are several government bodies, international organisations, municipalities, corporations and individuals across the world issuing bonds through this market to raise money. In this blog, you will …
