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Bond Features (What are some of the features that could be included with a bond prospectus that may

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Some of the features that could be included with a bond prospectus that mayhave an
impact on the yield of a new bond issue
During the moment of investing in specific firm irrespective of whether you are being on
the giving or the receiving end, it is extremely important to acknowledge two or extra methods
commonly used like Bonds and the application of shareholding. Bonds which are hence defined
as having a debt investment with a given or certain amount of funds and also having a fixed
interest rates so as to be paid back in full after a certain period of agreed time. The method of
investment is greatly used in by companies, states, federals, municipalities and also in foreign
governments (Berg, Tobias and Christoph Kaserer, 2015).

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One of the simplest features to determine when it comes to bonds since it will have a
great impact on the bond is the rate of coupon or in simple language the coupon. The coupon is
simply mostly referred to as the interest rates that are in agreement when issuing the bonds. The
interest rates are important to note since they are greatly of impact in the end when it comes to
paying back. Although it is essential to reflect on interest rates, recently the characteristic is
slowly decreasing due to the rise in the quantity of internet based bonds.
It is also important to consider redemption of which the characteristic is added on after
the issuer of the bond has in turn received the return on the investor’s principle. Redemption is
the word which is frequently stated to as the callable bonds. This feature has got several primary
types including optional redemption, extraordinary redemption and sinking fund redemption.
During the application of this feature of redemption, it is important to maintain caution when it
comes to the case known as upon to pay the call price of the bond.
It is also important to consider the use of floating rate bond since unlike a normal bond
which is hence uses a fixed rate; the floating rate bond has its interests reset within different time
periods (Paligorova, Teodora and Joao AC Santos, 2016).

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Insert Surname 1 Professor’s name Student’s name Course title Date Some of the features that could be included with a bond prospectus that mayhave an impact on the yield of a new bond issue During the moment of investing in specific firm irrespective of whether you are being on the giving or the receiving end, it is extremely important to acknowledge two or extra methods commonly used like Bonds and the application of shareholding. Bonds which are hence defined as having a debt investment with a given or certain amount of funds and also having a fixed interest rates so as to be paid back in full after a certain period of agreed time. The method of investment is greatly used in by companies, states, federals, municipalities and also in foreign governments (Berg, Tobias and Christoph Kaserer, 2015). Insert Surname 2 One of the simplest features to determine when it comes to bonds ...
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