1.2 Fundamentals of Bonds

In this section

• Defining Bonds and Fixed Income Securities
  Explore the fundamentals of bonds and fixed income securities, their role in financial markets, and key characteristics that define them.
• Common Features of Bonds: Understanding Face Value, Coupon Rate, Maturity Date, and Redemption Value
  Explore the fundamental features of bonds, including face value, coupon rate, maturity date, and redemption value, and learn how these elements influence bond pricing, yield, and investment strategies.
  • Understanding Face Value or Par Value in Bonds
    Explore the significance of face value or par value in bonds, its role in transactions, and how it differs from market price. Learn how it affects interest payments and bond valuation.
  • Coupon Rate and Payment Frequency in Bonds
    Explore the significance of coupon rates and payment frequencies in bonds, and learn how they affect bond valuation and investment strategies.
  • Understanding Bond Maturity Dates: Key Concepts for Fixed Income Investing
    Explore the significance of maturity dates in bond investing, their impact on bond pricing, interest rate risk, and classifications based on maturity. Gain insights into short-term, medium-term, and long-term bonds, and learn how to navigate the complexities of maturity in fixed income securities.
  • Redemption Value in Bonds: Understanding Maturity and Callable Features
    Explore the intricacies of redemption value in bonds, including the impact of callable features and redemption premiums. Learn how these factors influence bond pricing and investment strategies.
• Differences Between Bonds and Other Securities
  Explore the distinctions between bonds and other securities, including stocks and derivatives, to understand their unique roles in investment strategies.
  • Bonds vs. Stocks: Understanding the Key Differences
    Explore the fundamental differences between bonds and stocks, including rights, claims, and investment characteristics.
  • Bonds vs. Derivatives: Understanding Their Roles and Risks in Financial Markets
    Explore the fundamental differences between bonds and derivatives, their purposes, risks, and their strategic roles in financial markets.