3. What is Fixed Income Securities Market?

What does Term Bonds means?

Bond players are universally known as bond investors which come in a diversified role. In a simple term borrowing loans by corporate or government by the way of multiple investors with assurance toward fixed returns. The borrower / Issuer pledge to pay a fixed amount of interest (termed as coupon rate) yearly until maturity date. At maturity, the borrower / Issuer pledge to return the principal amount (termed as face value or par value) along with returns to the bond investors.

Let us understand by taking single chapter about fixed income saving bond funds, bond market in our next tutorial session.

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