What are the three aspects of the bond market? (Regarding the buying and selling of bonds...

What are the three aspects of the bond market? (Regarding the buying and selling of bonds as an investment)

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Bond is a legal document which is given by the corporate to the lender of the money to invest in some business and the bond holder is paid interest on the amount lended by them. Bonds are the long term debt. The three aspects of bonda are face value, maturity and interest. The face value is the value at which the bond is issued. This is the original price which is lended by the bond holder. When the bond matures then this face value is paid alongwith the interest. And maturity is the period when the bond get matures . Suppose the bond is for 30 years then that bond will get mature after 30 years from the date of issue. And interest is the amount paid by the corporate firm to the bondholder for the money lended by them.

Buying and selling of bond takes place after the new bonds are issued. Then these bonds are traded in the secondary market. The trade of these bonds take place through various brokers.

ekkarill92 answered 10 months ago

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