What are the terms of a bond?
The term of the bond is the amount of time between the bond’s issuance and its maturity. The majority of bonds issued today are term bonds, and these may be contrasted with serial bonds, which are structured so that a portion of the outstanding bond matures at regular intervals until all of the bond has matured.
What are bond terms and conditions?
The terms of a bond purchase agreement will include sale conditions, among other things, such as sale price, bond interest rate, bond maturity, bond redemption provisions, sinking fund provisions, and conditions under which the agreement may be canceled.
Do bonds have terms?
the terms of some bonds give the company the right to buy back the bond before the maturity date. this is known as calling the bond, and it represents “call risk” to bondholders. For example, a bond with a maturity of 10 years may have terms allowing the company to call the bond any time after the first five years.
What does Rep mean for bonds?
Registered representatives can buy and sell securities for clients. They are primarily known as transaction-based service providers. To carry out these transactions a registered representative must be licensed to sell the designated securities. They must also be sponsored by a firm registered with FINRA.
Are term bonds callable?
However, not all bonds are callable. Treasury bonds and Treasury notes are non-callable, although there are a few exceptions. Most municipal bonds and some corporate bonds are callable. A municipal bond has call features that may be exercised after a set period such as 10 years.
What are the key features of a bond?
Key Features of Bonds. Most bonds have five features when they are issued: issue size, issue date, maturity date, maturity value, and coupon. Once bonds are issued, the sixth feature appears, which is yield to maturity.
How do you find a bond’s term?
The formula for the duration is a measure of a bond’s sensitivity to changes in the interest rate, and it is calculated by dividing the sum product of discounted future cash inflow of the bond and a corresponding number of years by a sum of the discounted future cash inflow.
What are bond years?
Bond Year means the one year period ending on March 1 of each year, the principal payment dates for the Bonds.