Bonds can be differentiated in the way they earn income for you. On one hand we have simple annual coupon bearing bonds that pay you interest on a fixed date every year till maturity; while on the other hand, we have cumulative coupon bonds which ensure that your interest too earns interest and pay you the final accrual at the [...]
In this article we will discuss about:- 1. Meaning of Bonds 2. Bond Value 3. Theorems 4. Computation of Future Cash Flows. Meaning of Bonds: Bonds are negotiable promissory notes that can be used by individuals, business firms, governments or government agencies. Bonds issued by the government or public sector companies in India are generally secured. Private sector companies may [...]
Municipal bonds are bonds raised by municipal bodies or local governments for financing core urban infrastructure facilities like drinking water, sanitary systems, solid waste disposal systems, road, hospitals etc. Generally municipal bonds are broadly of two types. Municipal bonds are the ideal instruments for raising resources, channelling funds from capital market into infrastructure development. They are long-term in nature, unlike [...]