Bond: Difference between revisions

Bond (view source)

71 bytes removed , 30 September 2016

no edit summary

82,976

edits

@@ Line 1: / Line 1: @@
-A [[bond]] is a [[debt security]], traditionally bearing a [[fixed rate]] of interest. Compare with a [[note]] — which traditionally bears interest at a [[floating rate]], and a [[medium term note]], which can be fixed, floating or structured with all kinds of exotic [[derivative]] payoffs, but is issued from a [[medium term note programme]], rather than as a stand-alone issue.
+{{bondcapsule}} Compare with a [[note]] — which traditionally bears interest at a [[floating rate]], and a [[medium term note]], which can be fixed, floating or structured with all kinds of exotic [[derivative]] payoffs, but is issued from a [[medium term note programme]], rather than as a stand-alone issue.
 Contrast all those [[debt securities]] to [[equity securities]] — instruments such as shares, warrants units, which pay neither principal nor interest, but rather account for the overall performance of the company who issue them.
 [[Debt security|Debt securities]] generally rank ahead of equity securities in the capital structure of the issuer. This is because an issuer must pays off [[creditor|creditors]] before [[shareholder|shareholders]].