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bonds. Prepared by : Sanad elderawi ID : 120070338. Bonds. In finance , a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond. Issuing bonds. Bonds are issued by : public authorities credit institutions
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bonds Prepared by : Sanad elderawi ID : 120070338
Bonds In finance, a bond is a debtsecurity, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond
Issuing bonds Bonds are issued by : • public authorities • credit institutions • companies and supranational institutions in the primary markets
Features of bonds The most important features of a bond are: • Nominal, principal or face amount • Issue price • Maturity date
Types of bonds • Floating rate notes (FRN) • Zero coupon bonds • Fixed rate bonds • Infaltion linked bonds • Assest backed securities • Subordinated bonds • Registers bonds
Trading and valuing bonds The interest rate that the issuer of a bond must pay is influenced by a variety of factors , such as current market interest rates , These factors are likely to change over time, so the market price of a bond will vary after it is issued.
Investing in bonds Bonds are bought and traded mostly by institutions like pension funds, insurance companies and banks. Most individuals who want to own bonds do so through bond funds in the U.S., nearly 10% of all bonds outstanding are held directly by households
Bonds market is a finicial market where participants buy and sell debt securities, usually in the form of bonds As of 2006, the size of the international bond market is an estimated $44.9 trillion
Bonds market index A bond market index is a composite listing of bonds or fixed income instruments and a statistic reflecting the composite value of its components