Trading and valuing bonds
Investorline The interest rate that the issuer of a bond must pay is influenced by a variety of factors, such as current market interest rates, the length of the term and…
Bonds issued in foreign currencies
Some companies, banks, governments, and other sovereign entities may decide to issue bonds in foreign currencies as it may appear to be more stable and predictable than their domestic currency.…
Features of bonds
The most important features of a bond are: nominal, principal or face amount — the amount on which the issuer pays interest, and which, most commonly, has to be repaid…
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay…
Assets
Assets — things of value owned by a business. An asset may be a physical property such as a building, or an object such as a stock certificate, or it…
Appreciation
In accounting, ‘appreciation of an asset is an increase in its value. In this sense it is the reverse of depreciation, which measures the fall in value of assets over…
Types of Bond
The following descriptions are not mutually exclusive, and more than one of them may apply to a particular bond. Fixed rate bonds have a coupon that remains constant throughout…
Amortization
Amortization (or amortisation) is the process of decreasing, or accounting for, an amount over a period. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French…
Aging
A process where accounts receivable are sorted out by age (typically current, 30 to 60 days old, 60 to 120 days old, and so on.) Aging permits collection efforts to…
Accounting period
Accounting period in bookkeeping is the period with reference to which accounting books of any entity are prepared. It is the period for which books are balanced and the financial…