Bond fund A needs to pay the subscription fee, while bond fund C has no subscription fee, but it will charge a service fee more than A. The service fee is directly reflected in the net value, so the net value of bond fund C will always be lower than that of A and B. In addition, the investment period and investment quota of bond fund A and bond fund C are different. Bond Fund A is a long-term investment with a relatively high investment amount. Bond fund C has a large or small investment amount and an optional investment period, which is suitable for some investors with small subscription amount and uncertain holding time.

I. Basic concepts

Bonds are securities issued by issuers to raise funds. They pay a certain percentage of interest at the agreed time and repay the principal at maturity. Its essence is the proof of debt, which has legal effect. [1] Issuers are usually governments, enterprises, banks, etc. Because government bonds are guaranteed by government taxes, the risks are minimal, but the benefits are minimal. Corporate bonds are the most risky and the returns are correspondingly high. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.

Second, the transaction procedures

1. Investors entrust securities companies to buy and sell bonds, sign account opening contracts, fill in account opening related contents, and clarify the rights and obligations between brokers and customers.

2. Securities companies conduct bond trading business according to the entrustment conditions through their representatives or agents in the stock exchange.

3. Go through the formalities after the transaction. After the transaction, the broker shall fill in the transaction report on the day of the transaction and notify the principal (investor) to deliver the paid money or bonds to the entrusted broker on time.

4. The broker checks the transaction records and goes through the settlement and delivery procedures.

Third, the transaction method

The trading methods of listed bonds generally include spot trading, repurchase trading and futures trading.

1. Spot trading

Cash spot trading, also known as cash spot trading, is a trading method in which both buyers and sellers are satisfied with the buying and selling price of bonds and deliver them immediately after the transaction, or in a very short time. For example, investors can buy and sell listed bonds directly through securities accounts at various securities outlets of Shenzhen Stock Exchange.

2. Repurchase transaction

It means that when the bondholder, issuer and purchaser reach a deal, it is agreed that the issuer must buy back the bonds originally sold from the purchaser at an agreed price at an agreed time in the future, and pay interest at an agreed interest rate (price). Both Shenzhen Stock Exchange and Shanghai Stock Exchange have bond repurchase transactions, and both institutional legal persons and individual investors can participate.

3. Futures trade

Bond futures trading refers to a group of transactions that are delivered and settled at the price stipulated in the futures contract at a specific time in the future after the two parties complete the transaction. Bond futures trading.