A Bond is a credit that an investor makes to a company, government, centralized agency, or other organization.

accordingly, bonds are sometimes referred to as debt securities. because bond issuers recognize that you are not going to provide your hard-earned money without reimbursement, the issuer of the bond enters into a official Contract to pay you interest.

Bonds funds can be extremely helpful to anyone concerned about capital preservation and income generation.

Bonds funds also can help to some extent to compensate the risk that comes with equity investing. They can be used to achieve a variety of investment objectives. Bonds funds hold so many opportunities.

Accepting bond fundamentals is important to make Knowledgeable investment judgment about this investment type. The additional you know at present, the less possible you will be to make a decision you later be disappointed.

A bond is mostly just a advance, but in the form of a security, even if terms used is rather dissimilar. The issuer is equivalent to the borrower, the bond holder to the lender, and the coupon to the interest. Bonds enable the issuer to finance long-term investment with external funds.

A bond fund is a collective investment scheme that invests in bonds and other debt securities.

Bond funds yield monthly dividends that include interest payments on the fund's underlying securities plus any capital appreciation in the prices of the portfolio's bonds. Bond funds tend to pay higher dividends than CDs and money market accounts, and they generally pay out dividends more frequently and regularly than individual bonds.

Traditionally insurance bonds were with-profits policies and were often called with-profit bonds. Since the introduction of unitised insurance funds they have often been marketed as unit-linked bonds or investment bonds.

History of insurance

In some sense we can say that insurance appears simultaneously with appearance of human society. We know of two types of economies in human societies: money economies .

The second type is a more ancient form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbour, the other neighbours must help. Otherwise, neighbours will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread .

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. Insurer, in economics, is the company that sells the insurance. Insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage.

 

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Bond Yield
Yield is a general term that relates to the return on the capital you invest in the bond.
You hear the word "yield" a lot with respect to bond investing. There are, in fact, a number of types of yield. The terms are important to understand because they are used to compare one bond with another to find out which is the better investment.
Accrued interest is the interest that adds up each day between coupon payments. If you sell a bond before it matures or buy a bond in the secondary market, you most likely will catch the bond between coupon payment dates. If you are selling, you are entitled to the price of the bond, plus the accrued interest that the bond has earned up to the sale date.
majority of bonds are fixed-rate bonds, a category of bonds called floating-rate bonds have a coupon rate that is adjusted from time to time. Floaters offer protection against interest rate risk.

 
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