coupon bearing securities

Why do long term securities offer more return than short- term securities? It forces the issuer to make the retail investor aware, of the risks inherent in the investment, by way and its disclosure norms. The days elapsed is calculated as 30/360 ( 30 by 360 code reduction uni presse - Europian ) This is the variation of the above convention outside of the United States. The ultimate aim of any convention is to calculate (days in a month days in a year). B) What is interest rate risk, re-investment risk and default risk? However, corporates/PSUs have started issuing debentures in Demat form.



coupon bearing securities

Coupon-bearing bonds have durations shorter than their maturities. The longer duration of a zero means it has more interest-rate. The second type is interest at maturity securities. These are interest-bearing sec urities which pay the face amount plus a coupon on the maturity date.

Theses are typical of any fixed coupon security with a fixed period-to-maturity. This results, as people demand higher compensation for parting their money for a longer time into the future. If an investor purchases a 1,000 ABC Company coupon bond and the coupon rate is 5, the issuer provides the investor 5 interest every year. When a security is sold above its face value, it is said to be issued at a Premium and if it is sold at less than its face value, then it is said to be issued at a Discount Who are Primary Dealers Satellite Dealers? This is known as Redemption or Repayment of the bond/debenture.