Bonds Characteristics Tutorial
All bonds have 4 characteristics. Most have 5, including:
- Par Value
- Coupon Payment (and Coupon Rate)
- Maturity Date
- Yield to Maturity
Perpetual Bonds don’t have a Par Value (except maybe a “theoretical” one).
Zero Coupon Bonds don’t have offer Coupon Payments.
Bonds can be seen as instruments to raise finance (raise money) or as securities to help diversify your investment portfolio.
- Course: Bond Valuation Course