Today, LTG Goldrock will share with you the basic elements of the bond ~
Bond (Bonds / Debenture) is a financial contract. When the government, financial institutions , and industrial and commercial enterprises directly borrow funds from the society, they will issue it to investors.Principal debt debt vouchers.The essence of bonds is a certificate of debt, which has legal effect .Bond buyers or investors and issuer are a debt -debt relationship, bond issuers, namely the debtor , and investors (bond buyers ) that is the creditors.
Although there are various types of bonds, they must include some basic elements in the content .These elements refer to the basic content that must be stated on the issued bonds. This is the main agreement of clarifying the rights and obligations of creditors and debtors, including:
1.Bond face value
Bond face value refers to the value of the bond's ticket , which is the amount of principal that the issuer should repay after the bond expires .Someone pays the basis for calculation of interest on schedule.The face value of bonds is not necessarily consistent with the actual issuance price of the bond.issued.
2.Repayment period
Bond repayment refers to the time interval between corporate bonds uploaded by the uploaded bonds, that is, the time interval between bond issuance to the expiration date.The company should determine the repayment period of corporate bonds combined with its own capital turnover status and various influencing factors in the external capital market.
3.Interest payment period
The interest payment period of the bond refers to the time paid by the interest after the enterprise issued bonds .It can be paid once, or once every 1 year, half a year, or 3 months.In the case of considering the value of currency time and inflation, the interest payment period has a great impact on the actual income of bond investors .The interest of the bonds due to a period of interest is usually calculated by single interest; the interest of bonds that pay interest in the year, the interest is calculated based on compound interest .
4.Facial interest rate
Bond's ticket interest rate refers to the ratio of bond interest to the face value of bond , which is the calculation of the issuer to pay for the bond holder for a certain period of time. standard.The determination of bond ticket interest rates is mainly affected by factors such as bank interest rates , issuer's credit status, repayment period and interest calculation method, and the fund supply and demand situation in the capital market at that time.
5.Issuer name
The issuer's name indicates the debt subject of the bond to provide a basis for the creditors to recover the principal and interest.
The above elements are the basic elements of bond tickets, but not all of them are printed on the ticket when issuing. For example, in many cases, bond issuance will announce the bonds and the term and the future of bonds in the form of an announcement or regulations.Interest rate .
