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Inflation reduces the value of money; thus, it diminishes the purchase power of the fixed interest received by the bond. If inflation moves higher tha...
There are many kinds of bonds but with distinctive purposes and risk profiles. As such, there are:
1. Government Bonds: These bonds are from nationa...
1. Face Value (Par Value): Face value, or par value, is the amount the issuer promises to pay the bondholder at maturity. It is usually issued in deno...
Bonds are major components of the global financial system and offer investors a relatively stable source of income. However, investors will not make i...
Some of the bonds, especially those issued by small companies or less common governments, might not be very liquid since they cannot be easily traded....