Arellano University

Jose Rizal Campus

Gov. Pascual Ave. Concepcion,Malabon City

Understanding
Bond Market
In Partial Fulfilment of the subject FM 25 - Capital Markets of 1st Semester of S.Y. 2022-2023

Submitted by:
Aurelio,Andrea Nicole Y.
Galos,Rheysie G.

Submitted to:

Mr. Rodulfo Briones

 Table of Contents

I. Introduction……………………………………………………………….…..1-2

A. What is a bond market?.......................................1

B. Origin of bond market……………………………………………….2

II. How does a bond work? ………………………………………………3-11

A. Types and Characteristics of the Bond Market………3-7

a. Corporate Bonds………………………………………………..3
b. Government Bonds……………………………………………4
c. Municipal Bonds…………………………………………………5
d. Mortgage-Backed Bonds (MBS)...................5-6
e. Emerging Market Bonds…………………………….….6-7

B. Understanding Bond Market Prices…………………….…8-9

C. Pros and Cons of Investing in Bonds…………………10-11

a. Pros of Investing in Bonds …………………………..…10

b. Cons of Investing in Bonds …………………………….11

III. Conclusion: Active and Passive Strategies…………….….12-13

a. Actively Managed Funds………………………………………….12

b. Passively Managed Funds……………………………………..…13

IV. RRL……………………………………………………………………………………14