Bonds, the cornerstone of the financial world, are fascinating debt instruments issued by entities in need of capital. When you invest in a bond, you're essentially providing a loan to the issuer, which could be a government, municipality, or corporation. In return for this loan, the issuer promises to repay the principal on a specific maturity date. Until then, bondholders typically receive periodic interest payments, known as coupons, a fixed percentage of the principal.
This setup makes bonds attractive for regular income with relatively lower risk than stocks. Government bonds, like U.S. Treasury securities, are often considered one of the safest investments, as they are backed by the government's ability to tax its citizens.
Credit ratings are crucial to bonds. Think of them as a gauge of a bond's risk, where agencies evaluate the issuer's financial strength and the likelihood of meeting its obligations. Bonds with high credit ratings are considered investment-grade, appealing to conservative investors. On the other hand, those with lower ratings are often referred to as high-yield or junk bonds, which might attract risk-takers.
章から 2:
Now Playing
Financial Markets and Instruments
2.0K 閲覧数
Financial Markets and Instruments
6.9K 閲覧数
Financial Markets and Instruments
215 閲覧数
Financial Markets and Instruments
113 閲覧数
Financial Markets and Instruments
78 閲覧数
Financial Markets and Instruments
366 閲覧数
Financial Markets and Instruments
175 閲覧数
Financial Markets and Instruments
185 閲覧数
Financial Markets and Instruments
1.8K 閲覧数
Financial Markets and Instruments
196 閲覧数
Financial Markets and Instruments
96 閲覧数
Financial Markets and Instruments
84 閲覧数
Financial Markets and Instruments
4.3K 閲覧数
Financial Markets and Instruments
4.3K 閲覧数
Copyright © 2023 MyJoVE Corporation. All rights reserved