Bond Features Homework Help
Besides providing bond features assignment help, we teach everything about bonds
Helpmeinhomework.com aims to offer a successful career to its students. Therefore, we endeavour to teach them about all the entities of share market, while providing bond features assignment help. All of our financial accounting experts are the active members of share market. Thus, the quality of education you will get from us cannot get from anywhere else.
What is a bond?
When students come to us for bond features homework help, we first explain to them what a bond is. So that they can easily understand the solution that we provide.
Bond is a primary entity in share market. It is a debt investment. When any company or a government entity goes out of fund it borrows money from the investors against its shares. Shares are also known as bond. Investors lend money for a definite period of time at a variable or fixed interest rate.
Salient Characteristics of Bonds
It is a time when a bond matures, and owner gets the final payment including principal amount and interest. The “term to maturity” is the period of time pending the maturity of the bond?
There are three types of maturity terms- short-term, intermediate, and long-term with a maturity term of one to five years, five to twelve years, and more than twelve years, respectively.
2. Par value
Par value is the sum a bond owner will get after its maturity period. Usually, it is $1,000 per bond. Par value is commonly known as principal, face, redemption or maturity value. Bond prices are as percentages of par.
3. Coupon Rate
Coupon rate denotes the rate of interest that a bond holder earns from the bond. Multiply the coupon rate with the par value to find out dollar value of the coupon. The rate is applicable for one year, and generally, receiver get payment on semi-annual basis while some asset-backed securities make a monthly payment; many global securities make the annual payment. Coupon rate also affects the price of a bond. In general, higher the rate, lesser the price sensitivity of the bond price due to improvements in rate of interest.
4. Currency Denomination
Currency denomination specifies the currency in which a borrower will pay the interest and principle amount. There are two key types:
Dollar Denominated – It refers to bonds with payment in the American dollar.
Non dollar-Denominated – It represents bonds where payment is made in other currencies.
Other currency denomination structures can use different kinds of currencies for payment.
When providing bond features homework help, sometimes we need to explain the benefits of bonds as well. It motives the students to take interest on the subject and pay more attention.
- Bonds are a reliable source of current income.
- Bonds facilitate a certain element of liquidity, as the bond market is outsized and active
- If anyone sells a bond before its maturity period, it might receive more or less than the principal investment as bond values fluctuate.
- Usually, interest income from federal government bonds and municipal bonds are tax-free at the state and local level.
- In the continuum of investment options, investment grade bond is a comparatively low-risk investment.
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In recent years, our bond features homework help service has become very popular among the students. We provide unique answers to every student so that they can score higher grade. Time to time we collect feedback from our students and try to make our bond features assignment help service even better.