What You Need to Know About Bonds!
Lately, I've received some questions regarding finance from some close friends that got me thinking, with one of them revolving around bonds which you also may know as " Fixed Income ". Prior to this, I'll be the first to admit that I always thought of bonds as rather boring; I had this preconceived notion that bonds were simply less volatile with less reward compared to equities, which I've come to realise isn't necessarily true. With this article, I hope to present the compiled information I've managed to gather about bonds in an easy-to-understand way! Firstly, what exactly are bonds? Go easy on the design critique, please. Bonds are a financial instrument that represents a loan made by a creditor to a debtor. Most bonds have a specified maturity, which is when the principa l (The Original) amount gets repaid from the date when it was issued, typically paying out coupons (Interest Payments) semi-annually to bondholders. For ...