Ads
related to: investing in bonds explained
Search results
Results From The WOW.Com Content Network
Here are a few key terms you’ll need to know before investing bonds: Maturity: A specific date by which your principal loan must be repaid. This date is set at the beginning of the bond’s term ...
Investment-grade bonds are issued by companies that have earned a credit rating of at least triple-B from the credit-rating agencies such as Standard & Poor’s and Moody’s.
Investment-grade bonds. Investment-grade bonds come with at least a BBB- rating (or Baa3 from Moody's) from credit rating agencies. These bonds are believed to have lower credit risk than their ...
As these bonds are much riskier than investment grade bonds, investors expect to earn a much higher yield. A Climate bond is a bond issued by a government or corporate entity in order to raise finance for climate change mitigation- or adaptation-related projects or programmes. For example, in 2021 the UK government started to issue "green bonds".
The coupon (of a bond) is the annual interest that the issuer must pay, expressed as a percentage of the principal. The maturity is the end of the bond, the date that the issuer must return the principal. The issue is another term for the bond itself. The indenture, in some cases, is the contract that states all of the terms of the bond.
Investment-grade bonds have a low risk of default, which is the possibility of the issuer missing an interest payment. The entities issuing these bonds are generally trustworthy when it comes to ...