Section 4
Understanding Bonds
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
4 concepts
The Nature of Bonds
A bond is an instrument of indebtedness of the bond issuer to the holders.
Duration
Duration is the weighted average of the times until fixed cash flows of a financial asset are received.
Indenture
A bond indenture is a legal contract issued to lenders that defines commitments and responsibilities of the seller and the buyer.
Ratings
Bond credit rating agencies assess and report the credit worthiness of a corporation's or government's debt issues.