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In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time. Bonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is a perpetuity (i.e., bond with no maturity). From Wikipedia under the
GNU Free Documentation License  surfpacific.net.au 100px x 160px | 10.00kB [source page] Ready Finance Bond Loans  static.arsenal-mania.com 200px x 480px | 54.50kB [source page] By Jonathan Chong on Friday June 30 2006 Arsenal plan to raise an estimated 260 million from the UK bonds market to finance the debt accrued from the Emirates Stadium project From Yahoo Image Search: "Bond (finance)"  thegovmonitor.com admin Sun, 03 Jan 2010 17:11:28 GM Financial. market development. A broader array of . financial. markets including insurance, corporate . bond. markets, and a variety of plain vanilla derivatives markets such as currency futures would provide more instruments for saving, ...  shoikotsblog.blogspot.com Shoikot Sun, 03 Jan 2010 17:50:00 GM The country's . bond. market is the smallest in South Asia, with banking assets dominating the . financial. sector, according to the World Bank. The World Bank, in a report, said the eight corporate . bonds. were issued through private placement ...  bankfiesta.com FiestaMaster Sat, 02 Jan 2010 17:35:34 GM Gold . Bond. Ultimate Hand Sanitizer Moisurizer, 2.7oz or 12oz $1.00 off any 1 (x3/31) E-T-S. Gold . Bond. Ultimate Lotion or Cream, includes Ultimate Healing, Softening, Restoring, Soothing or Protection $1.00 off any 1 (x3/31) E-T-S . ... BankFiesta is a social deal finding site that specializes in all things . finance. . You can submit the latest deals and articles in Banking, Credit Cards, Mortgages and Personal . Finance. . We like money saving deals and we want to share them ... From Google Blog Search: "Bond (finance)"  news.google.com GulfNews It is home to Asia's biggest stock and bond markets and has the region's most international currency. Photo Hirohisa Fujii, 77, always personified Japan's ... Japan's new finance minister in favour of weaker yen FXstreet.com The Forex Market all 19 news articles » news.google.com HoweStreet.com Record amounts, for example, have just gone into bond mutual funds whose values can only disintegrate as interest rates inevitably rise. ... and more » news.google.com Wall Street Journal ... trillion in financing this year. What's more, Greek banks--traditionally the largest buyers of Greek debt--are expected to pare back their bond buying ... and more » From Google News Search: "Bond (finance)" Anybody good with Finance and finding bond value? Q. A bond pays annual interest of $50. They mature in 20 years have a par value of $2000. The required rate of return is 8%. Calculate the value of that bond for investors. Is teh price of $1827 fair market price for that bond? Asked by Yvy - Wed Aug 1 10:33:07 2007 - - 1 Answers - 0 Comments A. I get $920 to get an 8% return. Are you sure the bond pays $50 annually, instead of semi annually? Answered by Patrick M - Wed Aug 1 11:45:23 2007 How long will China continue to buy US treasury bonds to finance Obama's Santa Clause like giveaways? Q. Will he have to send Hilary over their again to beg them to keep buying our worthless treasury bonds ? Thanks in advance for your answers. God bless. Asked by mopar Mike aka tea party mobster - Thu Sep 10 15:06:20 2009 - - 9 Answers - 0 Comments A. China is worried about America s decision to resort to credit easing a modern way of printing money to try and get out financial troubles. This may force China to find alternatives to the dollar. Cheng Siwei, former vice-chairman of the Standing Committee and China s green energy chief, said that Americans change their policy as soon as they have positive growth again. If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in U.S. bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen and other currencies, he said. France, Russia and India have also called for an end of the dollar s role… [cont.] Answered by suthrnlyts - Thu Sep 10 15:27:04 2009 bond help--finance?
Q. i need some clarification please... if a company had long term debt issued at 14%, and its closing cost was $104...and could purchase new long term debt at a lower rate, say 12%...would they issue new LT debt to pay off early the debt at 14%? or would they wait until the closing cost was under $100? im not sure i understand--because i would issue new debt at a lower rate to rid the old debt...but i think i would actually be paying more than i issued it for because id be paying an extra $4? please help...thank you in advance Asked by xtcwmeg - Wed Oct 24 20:58:29 2007 - - 1 Answers - 0 Comments A. It depends on whether the debt is "callable" which means that the company has a chance to pay off before maturity. If the bonds are not callable, the company would have to purchase them on the bond markets. If they have to pay 104 per 100 and are borrowing at 12%, it would take them about 2 years to come out ahead. Answered by VATreasures - Wed Oct 24 21:08:56 2007 From Yahoo Answer Search: "Bond (finance)" |
