A bond is a form of loan or IOU. The buyer of the bond is the lender (creditor). The issuer of the bond is the borrower. The coupon is the interest.
The borrower is usually a business or government, who use the money to finance a variety of projects and activities.
The borrower issues a bond with an interest rate (coupon) that will be paid and when the loaned funds (bond) are to be returned (maturity date). Interest on bonds is usually paid every six months (semi-annually).
In case of bankruptcy, companies pay their debts first, including those who own the company's bond. After, if there are any assets left, the company pays investors, such as stock investors.
Main types of bonds:
- Corporate bonds
- Municipal bonds
- U.S. Treasury bonds, notes and bills, which are collectively referred to as simply "Treasuries."
Fixed Income Arbitrage,
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization),
Operating Cash Flow,
Book Value per Share,
Revenue Per Share,
Return on Equity (ROE),
Return on Assets,
Exponential Moving Average,
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