The Bond Essays

  • Bonds and The Bond Market

    3294 Words  | 7 Pages

    Bonds and The Bond Market Given today's uncertain economy, many people are taking time to examine various options for their financial future. Different types of investments are investigated and bonds are one of the more popular choices considered. Many of the same people who talk about investing in bonds, however, do not fully understand them nor where they place in the economy. Many individuals believe that they should simply buy a bond and wait until it matures before cashing it in. These people

  • Ionic Bond

    538 Words  | 2 Pages

    When ionic solids dissolve, they divide to give their positive and negative ions that make up the solids. These ions become hydrates and have the same relative proportions when in solution and when solid. The more the solid dissolves, the more the ion’s concentration increases. This increase and build-up allows for the reverse reaction to occur. In this phase of the reaction the ions crystallise out in order for the reaction to have a greater chance of occurring. Eventually the rate of dissolving

  • Importance Of Bond Valuation

    1743 Words  | 4 Pages

    1.2.2 Introduction to bond valuation • Bond valuation is a technique which is used to determine the fair value of a particular bond. Bond valuation includes calculating the present value of the bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also known as its face value or par value. • An investor uses bond valuation to determine what rate of return is required for an investment in a particular bond to be worthwhile because a bond’s par value and

  • High Yield-Bonds

    1393 Words  | 3 Pages

    High Yield-Bonds A bond is debt to whoever sells the bond to an inventor. If you buy an IBM bond, you are loaning money ($1000) to IBM instead of a bank loaning money to them. Just like a bank, you are going to charge IBM interest on your money, as well as a return of principle when the loan is due (ten years later). The company does not go to the bank to borrow the money, because the bank will rate the company as a high risk company. Hence, banks are really tight with their money. High yields

  • US Bond Market

    1372 Words  | 3 Pages

    You have been asked to write a training document about the US Bond Market for use in the new employee-training program. In your document, you must make sure to address each of the following: 1a: The key players in the market; and the types of investments available to both individual investors and institutional investors, Bond Characteristics A bond is a "security" which gives the holder a financial claim on the issuer. This claim protects the holder in circumstances in which the issuer is

  • Zero Coupon Bonds

    1616 Words  | 4 Pages

    Zero coupon bonds, more commonly known as “strips” or “zeros”, are fixed income securities that unlike other bonds, pay no interest until maturity. This means that instead of paying semi-annual interest like other bonds, the interest is compounded throughout the life of the bond and is paid in full upon maturity. Zero coupon bonds are ideal long-term investments for people who have a specific situation, which calls for a specific amount of money to be acquired at a future date, mainly ten to twenty

  • Bonds And Equities Essay

    862 Words  | 2 Pages

    Bonds and Equities Defining Bonds and Equities Bonds are certificates of obligation or indebtedness, issued by governments and companies to raise funds repayable at interest over relatively long periods. Equities are investments exercised by purchasing a share in the ownership of a corporation; and are more commonly called stocks or shares (as in the stock market or share market). Bonds have a very favorable relationship with equities. Historically, when equity markets fell, bonds had gone up in

  • Characteristics Of Mortgage Bonds

    1846 Words  | 4 Pages

    also borrow directly from the market by issuing bonds. So, let 's take a look at what bonds are and some of their main features and characteristics. At its simplest, a bond is a financial instrument, issued by the firm the represents its intentions to borrow for the long term and its promise to repay. This is certainly not a new type of instrument; they have been around for a very long time. Let 's take a look at an early example. Here is a bond that was issued in 1623 by the Dutch East India

  • The First Prize Bonds

    697 Words  | 2 Pages

    INTRODUCTION: Prize bonds are authorized and laid under 1956 act of finance (miscellaneous provisions), the similar concept of “premium bonds” were introduced in UNITED KINGDOM. At the same time “prize bonds” were introduced in year of 1956. In 1957 then first prize bond was sold in the month of March. The first prize bond results draw was held in September 1957. at that time there were only six wining numbers , and prize bonds were consisted on six digits only.. then the rule got changed and

  • Benefits of Investing in Bonds

    580 Words  | 2 Pages

    Benefits of Investing in Bonds Investors buy bonds for a variety of reasons. First, it is because it can yield enhancement, investing in bonds may improve their return than sitting on cash. When compared to other investments, such as saving accounts in banks, bonds pay a much higher rate of interest. So, instead of keeping money in a bank, people can invest in bonds and earn a good interest rate. Second, investing in bonds, investors can earn stable interest income. Bonds deliver stable and predictable

  • The International Bonds Market

    902 Words  | 2 Pages

    international Bonds markets is a platform whereby the flow of funds between the borrowers for long-run funds and long-term investors who supplies funds is facilitated. There are two main types of bonds that Shoprite can use the foreign bonds or the Eurobonds. Foreign bonds can be defined as bonds that are issued by a global borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated while Eurobonds are issued in a host country’s bonds market, in

  • Journal Article Continuing Bonds

    890 Words  | 2 Pages

    The purpose of this study was to give empirical proof that continuing bonds of attachment to a deceased spouse would give the most successful adaptation to bereavement. The study examined the measures of psychological adjustment within a 5 year post-loss period. By the end of the study, the researchers hoped to gain insight into if continued bonds would lead to adaptive lifestyle or would it be maladaptive and would continued bonds prove to lead to a healthier ongoing life. Method Participants 89

  • Collateral To A Bond Case Study

    1305 Words  | 3 Pages

    A collateral bond is backed by an asset, usually common stock, that adds security and reduces the risk of the bond to the bondholder. If the bond has collateral, the risk of the bond is less so the coupon rate will likely be lower because the bondholder is receiving extra for the added security. If the bond doesn’t have collateral, the risk is greater for the bondholder, so S&S will pay a higher coupon rate to make up for the higher risk. Adding collateral to a bond makes the bond more attractive

  • Why Invest in Bonds?

    2859 Words  | 6 Pages

    Why Invest in Bonds? Bonds are thought to be an investor's idea of a safe investment. When the stock market is in trouble, investors take their money from the equity market and put it into bonds. Also, investors feel bonds are perfect for a portfolio where they require some sort of fixed income. A bond's coupon payment would work nicely in this case. However, research may lead us to a different story. Is a bond a better overall investment during these two situations listed above, and many

  • Bonds And Stock Case Study

    869 Words  | 2 Pages

    Bonds and stocks are both financial securities that an investor can invest in the financial market. A bond is one of the many types of debt instruments that allows the issuing party to raise funds by borrowing from an investor. The issuing party is obligated to repay the investor in accordance with the terms of a contract between the two parties. A stock is a form of equity instrument that is raised by a corporation, through issuing or distributing shares on the equity market (Mushkin & Eakins, 2012;

  • Interest Rates and Bond Valuations

    1524 Words  | 4 Pages

    The intent of this paper is to define what bonds are as a vehicle for investors including a detailed explanation of the basic terms associated with bonds, the different types of bonds available in the markets, bond ratings, and why investors might want to consider bond investing to have a more diversified portfolio. Finally, the paper will discuss the relationship between bonds and interest rates in determining bond valuations. Following the discussion there will be a brief summary of the main points

  • Essay On Advantages And Disadvantages Of Bonds

    2123 Words  | 5 Pages

    (a) Bonds are considered as debt instrument or interest-bearing security in financial market. There are some characteristic of bonds and rules that Lim need to aware before he invests it because all of the factors can determine the value of a bond and the extent to which it fit to the portfolio. i) Face Value – There is the amount that bondholder will get back after the maturity date. The par value is usually RM 1,000 and the bond’s price is fluctuated throughout its life in response to a number

  • Bonds Between Mother and Daughter

    1085 Words  | 3 Pages

    Bond 2 Bonds Between Mother and Daughter Even before birth a mother and child share a special bond. This bond is like no other, for it is miracle to have a baby growing inside your body. The feelings that emerge with this miracle are too strong for words. After birth, the bond develops into a greater emotional and physical bond. The child will spend much of his or her time learning in the first years of life with the mother, who is usually the primary caregiver. Much of what the children learn

  • Corporate Bonds Case Study

    1603 Words  | 4 Pages

    Corporate bonds are issued by companies to raise more capital. That money is used to reinvest in their operations, to buy other companies or even pay off older, more expensive loans. The alternative for companies is to engage in an Initial Public Offering and raise equity by selling stocks. This is a long and an expensive procedure. Selling bonds provides a quicker way to raise capital for corporate expansion even though it’s a bit complicated. You can buy corporate bonds individually or through

  • Barry Bonds

    892 Words  | 2 Pages

    Barry Bonds played in the Major League Baseball as an outfielder from 1986 to 2007. Bonds first played for the Pittsburgh Pirates before joining the San Francisco Giants in 1993. Bonds' accomplished many baseball milestones that has garnered him recognition as one of the greatest MLB players of all time. He holds a grand total of seven MVPs with four of them earned consecutively, eight Gold Glove and fourteen All-Start awards. Statistically, he has the all-time 762 MLB home run record, including