Infermath logo
Bonds are debt instruments used by big institutions to borrow money. Among major debt issuers are governments, corporates and banks. Bonds pay interest in form of fixed coupon or discounted price. Bonds are characterised by yield - the return on initial investment. The better the credit of the borrower the higher the bond price and the lower the yield. As Financial Times would put it: the prices of bonds and interest rates are inversely related.
Previous Episode list Next