.png){kind=logo}
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....
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...
The chance that interest or principal payments will not be made because the issuer defaults. For lower-credit-rated issuers, "junk" bonds, credit risk...
It has already been established that the price of bonds moves in an inverse relation with interest rates. This means that if interest rates are incre...
While bonds are safer compared to equities, they are not a completely risk-free investment. These include the following risks:
1. Interest Rate Risk:...
The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond...
The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond...
The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond...
These are hybrid securities that make it possible for bondholders to convert their bonds into a specified number of shares of the issuer's common stoc...