A bond is a certain issue-grade security, which entitles its owner to receive from the bond issuer within a specified period of time an amount of money corresponding to its par value. In addition, the bond provides for the possibility of earning income in the form of interest. This security confirms the existence of debt obligations that can be sold, bought and pledged.
Instructions
Step 1
As a rule, the company issues bonds and then sells them to investors and guarantees the fact that during the specified period the individual or legal entity will receive the amount of money as interest. Also, at the end of the bond's validity period, it will redeem the securities and, accordingly, return the borrowed funds. It should be noted that the bond does not give any right to directly participate in the issuer's business, but it gives a guarantee in receiving income regardless of the specific results of the issuer's business organization. In addition, the bond has a final circulation period.
Step 2
There are certain arguments in favor of the production of bonds, namely: in the case of a high value, debt securities will not lead to the transfer of the debtor's property under arrest; the specific procedure for transferring rights from a creditor to another creditor is greatly simplified, and this reduces the risks in doing business.
Step 3
Depending on the method of payment of income, bonds are divided: into interest-bearing securities, which are characterized by the fact that during the circulation period of the bond itself, the issuer must constantly pay a certain percentage, called a coupon; discount securities, which do not provide for the payment of coupons - these bonds are made at a discount and are redeemed only at par.
Step 4
By the type of issuer, bonds are: corporate, issued by limited liability companies, as well as joint stock companies; state-owned - produced directly by the Ministry of Finance of the Russian Federation; municipal - produced by various cities and regions.
Step 5
It should be borne in mind that each bond has a par value at which they are redeemed. In addition, the coupon size is specifically determined as a percentage based on the par value of the security. It should be noted that of all bonds that are traded on Russian stock exchanges, most of them have a par value of one thousand rubles.
