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Due diligence is a way of checking, investigating, or auditing a potential deal or investment opportunity to confirm all the important facts and finan...
Bonds are major components of the global financial system and offer investors a relatively stable source of income. However, investors will not make i...
Some of the bonds, especially those issued by small companies or less common governments, might not be very liquid since they cannot be easily traded....
Inflation reduces the value of money; thus, it diminishes the purchase power of the fixed interest received by the bond. If inflation moves higher tha...
The chance that interest or principal payments will not be made because the issuer defaults. For lower-credit-rated issuers, "junk" bonds, credit risk...
It has already been established that the price of bonds moves in an inverse relation with interest rates. This means that if interest rates are increa...
While bonds are safer compared to equities, they are not a completely risk-free investment. These include the following risks:
1. Interest Rate Risk:...
The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond...
The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond...