• Financial Maths

  • An overview of Corporate Finance
  • Basic Financial Terms
  • Economics
  • Mathematics
  • Portfolio Analysis
  • How to read Financial Data?

Bond

A bond is an asset that pays the regular interest payments and repay the original investment at the expiry date of the bond.

Regular interest payments are called coupon. The original investment is called the face value and the date of expiry is called maturity or the date of maturity.

Definition
A bond is an asset that pays the regular coupon, and repay the face value at the maturity.

There could be several types of bonds depends on the terms and conditions of the bonds. A few of them are:

Zero-Coupon Bond
A zero-coupon bond is a bond that purchased or sell at a smaller amount than its face value, and repay the face value at maturity.