Bonds
CONTENTS
Introduction of bonds……………………………………………..01
Characteristics of Bonds…………………………………………01
Types of Bonds…………………………………………………… 06
Bonds Market……………………………………………………… 08
Introduction of Pakistan bond market……………...................08
How Bonds Trade……………………………………………….….09
Bond Price Variations……………………………………………..09
Bond valuation…………………………………………..................09
Types of bonds trade in Pakistan……………………………….10
Government Debt Securities……………………………………..10
Characteristics of MTBs and PIBs………………………………12
Pakistan Investment Bonds……………………………………... 12
Auction Mechanism………………………………………………...13
Corporate Bond Market…………………………………………....13
Conclusion…………………………………………………………...14 Reference………………………………… ……………….………...14
Summary of Articles………………………………………………..15
Introduction of bonds
Definition:
A bond is basically a loan. The owner of a bond has given the issuer-whether it is a corporation, a government or another agency-a sum of money that can be used at any point. In exchange, the issuer will pay interest to the bondholder over a period of time and will eventually return the initial amount loaned, called the principal. Unlike a stock, the bondholder does not own a part of the company. Because a bond is basically a loan, they are often called "debt securities" because they represent a debt obligation from the issuer to the bondholder. Bonds are also known as fixed income securities. The reason for this name is that at the time of the purchase of a basic bond, the amount of income and the timing of the payments are known to the purchaser. Bonds are called debentures and debt instruments as well.
CHARACTERISTICS OF BONDS
At the time of purchase, the characteristics of the bond will be stated in the certificate. Bonds have many characteristics such as the way they pay their interest, the market they are issued in, the currency they are payable in, protective features and their legal status. Bond issuers may be governments, corporations, special purpose
Introduction of bonds……………………………………………..01
Characteristics of Bonds…………………………………………01
Types of Bonds…………………………………………………… 06
Bonds Market……………………………………………………… 08
Introduction of Pakistan bond market……………...................08
How Bonds Trade……………………………………………….….09
Bond Price Variations……………………………………………..09
Bond valuation…………………………………………..................09
Types of bonds trade in Pakistan……………………………….10
Government Debt Securities……………………………………..10
Characteristics of MTBs and PIBs………………………………12
Pakistan Investment Bonds……………………………………... 12
Auction Mechanism………………………………………………...13
Corporate Bond Market…………………………………………....13
Conclusion…………………………………………………………...14 Reference………………………………… ……………….………...14
Summary of Articles………………………………………………..15
Introduction of bonds
Definition:
A bond is basically a loan. The owner of a bond has given the issuer-whether it is a corporation, a government or another agency-a sum of money that can be used at any point. In exchange, the issuer will pay interest to the bondholder over a period of time and will eventually return the initial amount loaned, called the principal. Unlike a stock, the bondholder does not own a part of the company. Because a bond is basically a loan, they are often called "debt securities" because they represent a debt obligation from the issuer to the bondholder. Bonds are also known as fixed income securities. The reason for this name is that at the time of the purchase of a basic bond, the amount of income and the timing of the payments are known to the purchaser. Bonds are called debentures and debt instruments as well.
CHARACTERISTICS OF BONDS
At the time of purchase, the characteristics of the bond will be stated in the certificate. Bonds have many characteristics such as the way they pay their interest, the market they are issued in, the currency they are payable in, protective features and their legal status. Bond issuers may be governments, corporations, special purpose