Objective of Study
The main objectives of studying the valuation of bonds are:
To study different types of bond
Describe the characteristics of corporate bonds.
Discuss why corporations issue bonds.
Explain why investors purchase corporate bonds
Discuss why central and state governments issue bonds and why investors purchase government bonds.
Evaluate bonds when making an investment.
Bond Valuation with reference to Indian Government securities. Research Design:
A Research design is an overall framework of project that indicates what information to be collected from which sources and by which procedures. Research design is the plan, structure and strategy, if investigation conceived so as to obtain answer to research questions. Based on research requirement formalized studies is more pertinent i.e. Descriptive study have to be used. Sampling:
Sample that would be used here is long term Treasury Bond issued by Indian Government Research Tool Used:
Research tool used is secondary data for research from Reserve Bank of India and other reports. Data Collection:
Data here is secondary data for research and is being collected from RBI website, various reports and various books.
This project describes bonds as an investment alternative. Initially, we examine important characteristics that pertain to bond investments. Then, we would discuss the topics of why corporations sell bonds and why investors buy those bonds. Next, the differences between corporate and government bonds, and the factors that investors use to evaluate bond investments would be analyzed. The following areas will be covered in the project:
The importance of bond valuation.
The different Types of bonds
Important terms and commonly used market terminologies
Difference between corporate and treasury bonds
What are the basic mathematical concepts one should know for calculations...
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