Many people have a basic understanding of bonds, but how much do you know about the four basic elements of bonds? Below is some relevant information on the four basic elements of bonds compiled by the editor of DS for your reference.

Four basic elements of bonds (1) Par value.

The par value of a bond, referred to as par value, refers to the par amount set when the bond is issued. Bonds issued in my country generally have a par value of 100 yuan each.

(2) Bond price.

The price of a bond includes the issuance price and transaction price.

The issue price of a bond may not equal the face value of the bond.

When the bond issuance price is higher than the face value, it is called a premium issue; when the bond issuance price is lower than the face value, it is called a discount issue; when the bond issuance price is equal to the face value, it is called an at-money issue.

(3) Repayment period.

The repayment period of a bond is a period of time, starting from the issuance date of the bond and ending with the repayment date indicated on the bond face.

The repayment date is also called the maturity date. On the maturity date, the issuer of the bond repays all principal and interest, and the creditor-debt relationship represented by the bond terminates.

(4)Coupon interest rate.

The coupon rate is the ratio of the annual interest paid to the face value of the bond.

The interest received by investors is equal to the face value of the bond multiplied by the coupon rate.

The significance of bond issuance: In the future, the proportion of bond issuance by non-state-owned enterprises and small and medium-sized enterprises should be increased.

From the perspective of bond investors, it is necessary to gradually increase the proportion of bonds held by non-deposit monetary institutional investors, create conditions for social security funds, corporate annuities, etc. to enter the market, and adopt various methods to enrich the investor structure.

On June 19, 2013, the State Council executive meeting clearly requested the study and deployment of financial policies and measures to support economic structural adjustment, transformation and upgrading.

These include "expanding bond issuance and gradually realizing bond market interconnection."

Expanding bond issuance is of great significance to the construction of my country's multi-level financial market system, increasing the proportion of direct financing and reducing the vulnerability of the financial system.

While expanding bond issuance, the bond market needs to be more transparent and have good liquidity to create conditions for more participants to enter the bond market.

In 2013, China's bond market was supervised by multiple departments, and the inconsistent market structure hindered the realization of the basic function of optimizing resource allocation in the financial market.

Bond market interconnection is the general trend.

The mutual integration of the bond market will enable the bond market to fully reflect the information of the capital market, and the price of funds will be reflected in real time through transaction prices.

Facing a fragmented bond market and a chaotic interest rate term structure, companies have no way to obtain accurate information on financing costs like they can in a unified market.

A low-level bond market cannot fully compete with banks, which will make it difficult for companies to reduce their financing costs.

The interoperability and rapid development of the bond market will put pressure on commercial banks, prompting them to improve their ability to assess risks and price, conduct more accurate analysis of corporate credit, improve their service capabilities for different companies, and have

Help enhance its international competitiveness.

In addition, the expansion of bond issuance requires the further development of my country's rating agencies, and the enrichment of bond products requires rating agencies to fulfill their responsibilities and provide investors with truly differentiated and informative research reports and rating evaluations.

Characteristics of bond funds: 1. Low risk and low return. Since bond returns are stable and the risk is small, compared with stock funds, bond funds have low risks but low returns.

2. Lower fees. Since bond investment management is not as complicated as stock investment management, the management fees of bond funds are also relatively low. 3. Stable income. Investment in bonds will provide regular interest returns, and they will also promise to repay the principal and interest when they mature. Therefore, bonds

The fund's income is relatively stable.

4. Pay attention to current income. Bond funds mainly pursue relatively fixed income in the current period. Compared with stock funds, they lack the potential for appreciation and are more suitable for investors who are unwilling to take too many risks and seek stable income in the current period.