August 2011
Beginner
547 pages
16h 12m
English
A bond or debenture represents a long-term obligation for the money that the concern has borrowed. It has some distinctive features as compared to shares that are discussed in Chapter 15. However, for the convenience of the readers, an attempt is being made to acquaint them with a few terms that are frequently used.
The principal is the amount of borrowing in exchange for the bond. The coupon rate is the interest rate at which the money is borrowed. Coupon payment is the interest payment. The par value is the face value of the bond. It is the amount that is repaid at the end of the bond’s life. The maturity date is the date on which the bond is fully repaid. When the entire face value of the bond is repaid ...
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