Question

In: Finance

write an introduction about bond market ? ( why you study bond market ? and what...

write an introduction about bond market ? ( why you study bond market ? and what you want to learn ? )

Solutions

Expert Solution

The bond market is a financial market that involves issuance and
trading of debt securities.
The bond market is a way for the government and corporations
to raise capital for government projects, business expansions and
ongoing operations.
You study the bond market as an investor when you want to invest your
money in financial instruments that are more liquid than a savings account
and have a lower risk than stocks. Bonds can be bought and sold and the price of
bonds varies with fluctuating interest rates.
There is a lot of learning opportunity when you study bonds because bonds are of
many different types. The bonds are corporate bonds, government bonds, municipal bonds,
mortgage backed bonds, asset backed bonds, and collateralized debt obligations.
Corporate bonds are usually issued to fund ongoing business or expansion projects for corporations.
Whereas government bonds and municipal bonds are issued to fund government projects throughout
the United States.

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