A bond is a type of fixed-income instrument issued by the government or corporations to finance its projects and operations with the help of investors. In return, when the bond matures, investors get a promised return on their investment. After the bonds are issued by the government institutes, they are traded and circulated between investors in the market. After the maturity period gets over, the investors can redeem their bonds and receive their capital with interest promised by the government bodies. The market in which the bond is created, issued and traded is called a bond market. The bond market is basically of two types: Primary Bond Market Secondary Bond Market Primary Bond Market is the place where new bonds are originated and issued. On the other hand, the secondary bond market is the one where existing bonds are traded among investors. The life cycle of a bond consists of three steps: Origination of Bond Trading of Bond Maturity of Bond ...
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