¶ Introduction
A bond is a type of debt security issued by governments, corporations, and other organizations to raise capital. When an entity issues a bond, it is essentially borrowing money from investors who purchase the bond. In return for lending money, the issuer promises to pay the bondholder a fixed rate of interest over a specified period of time, and to repay the principal amount of the bond when it reaches its maturity date.
Bonds are considered a relatively low-risk investment because they provide a fixed rate of return and the issuer has a legal obligation to pay the bondholders the promised interest and principal payments. Bonds are typically rated by credit rating agencies based on the creditworthiness of the issuer, which indicates the likelihood of the issuer being able to fulfill its obligation to pay back the bondholders.
There are many different types of bonds, including government bonds, municipal bonds, corporate bonds, and convertible bonds. Each type of bond has its own characteristics, including the interest rate, maturity date, and risk level.
Investors often use bonds to diversify their portfolios and to generate income, as the interest payments from bonds can provide a steady stream of cash flow. Bond prices can also be affected by changes in interest rates and economic conditions, so they can be used as a hedge against inflation and other financial risks.
This is just a basic overview of the bond process, and there can be many additional steps and variations depending on the specific bond offering and market conditions.
¶ Navigation
¶ Daily use
¶ Bonds list page
The development of TMS Bonds functionality is currently in progress.
