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Name – Vanshita Garud

Topic – Bonds
INTRODUCTION:
1. BONDS ARE USED TO RAISE CAPITAL

2. INVESTOR LENDS MONEY TO THE ISSUER IN EXCHANGE FOR PERIODIC INTEREST

3. FIXED-INCOME INSTRUMENT

4. INVERSELY CORRELATED WITH INTEREST RATES


WHO ISSUES BONDS?
BONDS ARE USED BY COMPANIES, MUNICIPALITIES, GOVERNMENTS TO FINANCE
PROJECTS AND OPERATIONS

1. GOVERNMENT BONDS

2. CORPORATE BONDS

3. MUNICIPAL BONDS
CHARACTERISTICS OF BONDS
1. FACE VALUE

2. THE COUPON RATE

3. COUPON DATES

4. THE MATURITY DATE

5. THE ISSUE PRICE


VARIETIES OF BONDS
1. CONVERTIBLE BONDS

2. CALLABLE BONDS

3. PUTTABLE BOND
BENEFITS OF BONDS
1. INCOME GENERATION

2. DIVERSIFICATION

3. PRESERVATION OF PRINCIPAL

4. PREDICTABLE RETURNS
DRAWBACKS OF BONDS
1. BONDS PAY OUT LOWER RETURNS THAN STOCKS

2. COMPANIES CAN DEFAULT ON YOUR BONDS


CONCLUSION:
1. BONDS OFFER INVESTORS A WAY TO EARN
STEADY INCOME AND PRESERVE CAPITAL.

2. HOWEVER, THEY COME WITH RISKS SUCH AS


THE POSSIBILITY OF DEFAULT, INTEREST RATE
FLUCTUATIONS, AND LOWER RETURNS
COMPARED TO STOCKS.
THANKYOU

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