Bonds

Characteristics

On completion, the candidate should:

• understand the characteristics and terminology of bonds:
  • coupon
  • redemption
  • nominal value
• know the definition and features of government bonds:
  • US
  • UK
  • France
  • Germany
  • Japan
• know the potential advantages and disadvantages of investing in government bonds

Corporate Bonds

On completion, the candidate should:

• know the definitions and features of the following types of bond:
  • domestic
  • foreign
  • eurobond
  • asset-backed securities
  • zero coupon
  • convertible
• be able to calculate the flat yield of a bond
• know the potential advantages and disadvantages of investing in corporate bonds
• understand the role of credit rating agencies and the difference between investment and non-investment grades

• Topics covered:

  • Characteristics
  • Corporate Bonds