Bond Characteristics Tutorial

Bonds Characteristics Tutorial

Key Snapshots

All bonds have 4 characteristics. Most have 5, including:

1. Price
2. Par Value
3. Coupon Payment (and Coupon Rate)
4. Maturity Date
5. 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.

Use cases

Bonds can be seen as instruments to raise finance (raise money) or as securities to help diversify your investment portfolio.

Related Resources:

• Articles:
  • What is a Bond? Beginner Friendly Walkthrough
  • How Do Bonds Work?
  • Zero Coupon Bonds Explained (With Examples)
  • How to Value Bonds – Fixed Income Valuation
  • What are Perpetual Bonds? How to Value Them?
  • Discount vs Premium Bonds – Trading Status
  • What are Bond Ratings? How Do They Work?
• Course:
  • Bond Valuation Mastery course