Valuation of bonds - variables that describe the bonds, part. 1 of 2
Financial instruments in the form of bonds are nothing else as a security issued by an issuer that confirms the issuer’s debt to the bondholder (the bond purchaser). Issuance of bonds is the source of funding.
Bond Buyer has no other rights with respect to the issuer's claim arising out of the benefits due to the purchase of bonds (eg. due to dividends or co-ownership - as in the case of shares).
The bonds are interest-bearing securities of any interest rate. Interest rates may be either:
- Constant
- Variable.
- The nominal value
- The issue price
- Rates of bond market
- Interest Coupons
- The profitability and viability of the nominal current.
- Yield to maturity
- Clean price and dirty price of the bond
- The period for which the bond was issued.
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