Volume : 2, Issue : 5, MAY 2016

BOND INVESTMENTS - AN ANALYSIS

Dr. T. Vetrivel, V. S. Binu

Abstract

Investing in equity shares is a risky investment and this make many investors to refrain themselves from investment avenues other than bank fixed deposits and recurringdeposits. Today we have an investment avenue which is less risky than equity shares and give more returns than bank deposits, known as bonds. Those investors who expect more returns than bank deposits and ready to take a moderate level risk can choose bonds to invest.. The bond is issued by corporates and Governments to the investors which gives fixed returns for a stipulated period with the advantage of liquidity. This article discuss about the same with the tools like holding period returns, current yield, yield to maturity and bond duration.

Keywords

Bonds, holding period return, current yield, yield to maturity, bond duration

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