-There are a few types of bonds. -Risks of bonds: *Issuer risk *Price risk *Reinvestment risk -Bonds are debt instruments issued by a company or a government entity .
Firstly i have learnt that there are many risks of bonds such as issuer risk where we can have probability of loss resulting from the default of the user. And also price risk as well as reinvestment risks. Secondly i learn that There are only a fe types of bonds such as government bonds and also corporate bonds.
1. The first thing I have learnt is about Bonds. Bonds are about debt instruments issued by a company or a government entity which is called by a Issuer. The Issuer will pay a coupon which is called an interest to the bond investor based on a schedule. This schedule can be on a quarterly, semi-annual or annual basis and that the maturity, the Issuer will return the principal back to the investor.
2. I have learnt about the different types of Bond. One of which is Corporate Bond that offers Convertible Bonds and Vanilla Coupon-Paying Bonds etc.
3. The last thing I have learnt is about how the Bonds works and the Risks of Bonds. The Bonds work in a way where when Bonds with prices quoted below 100% are traded at a discount. Bond prices move in the opposite direction of interest rates i.e. if interest rates rise, the price of a bond will fall and vice-versa.
There are also risks about Bonds such as Price Risk where Bond Prices are affected by interest rate movements. When interest rates rise, bond price falls and Investors should be aware that the price of their bonds as it may decrease because of interest rate rising. Reinvestment Risk where investors do receive coupons on a regular basis, however, they may not be able to reinvest the coupons just as that they have received the coupons.
-There are a few types of bonds.
ReplyDelete-Risks of bonds:
*Issuer risk
*Price risk
*Reinvestment risk
-Bonds are debt instruments issued by a company or a government entity .
Mohana
SQ1404A
noted and transferred
ReplyDeleteFirstly i have learnt that there are many risks of bonds such as issuer risk where we can have probability of loss resulting from the default of the user. And also price risk as well as reinvestment risks.
ReplyDeleteSecondly i learn that There are only a fe types of bonds such as government bonds and also corporate bonds.
AKMAL
SQA
There are three things that I have learnt:
ReplyDelete1. The first thing I have learnt is about Bonds. Bonds are about debt instruments issued by a company or a government entity which is called by a Issuer. The Issuer will pay a coupon which is called an interest to the bond investor based on a schedule. This schedule can be on a quarterly, semi-annual or annual basis and that the maturity, the Issuer will return the principal back to the investor.
2. I have learnt about the different types of Bond. One of which is Corporate Bond that offers Convertible Bonds and Vanilla Coupon-Paying Bonds etc.
3. The last thing I have learnt is about how the Bonds works and the Risks of Bonds. The Bonds work in a way where when Bonds with prices quoted below 100% are traded at a discount. Bond prices move in the opposite direction of interest rates i.e. if interest rates rise, the price of a bond will fall and vice-versa.
There are also risks about Bonds such as Price Risk where Bond Prices are affected by interest rate movements. When interest rates rise, bond price falls and Investors should be aware that the price of their bonds as it may decrease because of interest rate rising. Reinvestment Risk where investors do receive coupons on a regular basis, however, they may not be able to reinvest the coupons just as that they have received the coupons.
Timothy Dalton
SQ1404A