bonds
Bonds

A bond is an instrument that typically provides a fixed income in terms of interest. It represents a debt between the purchaser and the borrower. The borrowers are typically the government/government entities or corporations issuing bonds to raise money. The investor buys the bond and periodically receives interest payments up until a maturity date when the principal is paid back to the investor.

Government bonds are usually the safest but offer relatively low interest payments. On the other hand, corporations and other entities which have a higher risk of one-day defaulting, offer a higher interest rate to appeal to the masses for the added risk they bring.
CFI offers access to a variety of corporate and government bonds through its CFI Global platform.

Types of Bonds

Other types of bonds include zero coupon bonds which are typically sold at a discounted price and are paid back at face value when they mature. Also, convertible bonds which can be converted to a set number of stocks.

Terminology

Coupon: Percentage of interest to be paid on a bond throughout the length of one year Maturity: The date the bond will be paid off Yield: Usually means yield to maturity, the yield accounts for coupon payments as well as the current price compared to its par value Basis points: hundredth of a percentage point. 1% to 1.5% is equal to 50 basis points Spread over governments: Is the interest rate differential between government bonds and other types of bonds

Commissions

Commissions on Bonds vary according to type and location of market. Please contact us for more information.

Trading example

*Please note that the example below is hypothetical in nature and does not necessarily reflect real conditions. You have been watching a 10-year corporate bond paying 4% with a face value of $5,000. You decide to buy the bond and hold it till maturity. Every year you receive 4% interest (5,000 x 4% = $200) After 10 years, you will receive the $5,000 back and a total of 10 years of interest which amounts to $2,000.

Image

Supercharge Your
Trading With CFI

Ultra-fast execution
Ultra-competitive conditions
Powerful tools & analytics

Bonds

A bond is an instrument that typically provides a fixed income in terms of interest. It represents a debt between the purchaser and the borrower. The borrowers are typically the government/government entities or corporations issuing bonds to raise money. The investor buys the bond and periodically receives interest payments up until a maturity date when the principal is paid back to the investor. Government bonds are usually the safest but offer relatively low interest payments. On the other hand, corporations and other entities which have a higher risk of one-day defaulting, offer a higher interest rate to appeal to the masses for the added risk they bring. CFI offers access to a variety of corporate and government bonds through its CFI Global platform.

Types of Bonds

Other types of bonds include zero coupon bonds which are typically sold at a discounted price and are paid back at face value when they mature. Also, convertible bonds which can be converted to a set number of stocks.

Terminology

Coupon: Percentage of interest to be paid on a bond throughout the length of one year Maturity: The date the bond will be paid off Yield: Usually means yield to maturity, the yield accounts for coupon payments as well as the current price compared to its par value Basis points: hundredth of a percentage point. 1% to 1.5% is equal to 50 basis points Spread over governments: Is the interest rate differential between government bonds and other types of bonds

Commissions

Commissions on Bonds vary according to type and location of market. Please contact us for more information.

Trading example

*Please note that the example below is hypothetical in nature and does not necessarily reflect real conditions. You have been watching a 10-year corporate bond paying 4% with a face value of $5,000. You decide to buy the bond and hold it till maturity. Every year you receive 4% interest (5,000 x 4% = $200) After 10 years, you will receive the $5,000 back and a total of 10 years of interest which amounts to $2,000.

The Market never sleeps. Don't miss out 

on opportunities. Start now.

Ultra-fast execution. Highly competitive Conditions. Powerful tools & analytics.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
CFI Financial Group has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest - CFI LEBANON
BDL no. 40
1019238,
Ellipse Center 3rd floor, Charles
Malek Avenue, Achrafieh

CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

niss
forme
The Best Online Financial Trading Services, Middle East, 2020
Entrepreneur Magazine

Please publish modules in offcanvas position.