Bonds

Yield on a bond is known in advance

As a rule, bonds are bullet loans on which the issuer pays a fixed interest rate, so-called coupon rate, once a year.

A bond can be sold before its maturity date. The prices for fixed-interest bonds vary in the secondary market according to the general interest-rate situation. Their value increases as market rates decrease and decreases as market rates increase.

How does your business benefit from a bond?

• The investment can be sold before the maturity date.
• There are different yield levels to choose from, based on the issuer.
• Safer alternative than a direct equity investment.
• Trading orders can be made in Netbank.