3. Debt Instruments: The Basics

In this section

• Understanding Debt Securities: A Comprehensive Guide for Beginners
  Explore the fundamentals of debt securities, their role in financial markets, and how they function as loans from investors to issuers. Understand the contractual obligations, repayment terms, and the roles of issuers and holders in debt agreements.
• 3.2 Bonds and Their Features
  • Par Value, Coupon Rate, and Maturity: Understanding Bonds
    Explore the fundamental concepts of par value, coupon rate, and maturity in bonds, essential for mastering financial instruments.
  • Types of Bonds: Government, Corporate, Municipal
    Explore the various types of bonds including government, corporate, and municipal bonds, and understand their roles in funding operations, raising capital, and supporting public projects. Learn about their risk profiles, tax considerations, and market dynamics.
• How Bonds Are Issued and Traded: A Comprehensive Guide
  Explore the intricate process of bond issuance and trading, from primary market sales to secondary market transactions. Understand the roles of underwriters and brokers in the bond market.
• Risks Associated with Debt Instruments
  Explore the key risks associated with debt instruments, including interest rate risk, credit risk, and inflation risk. Learn how these factors impact bond prices and investor decisions.