What are the factors that affect bond prices? Bonds are the third largest financial investment mode besides stocks and futures. They are a more popular form of financial investment. However, investment has risks and there are many factors that affect the changes in bond prices.
A bond is a financial contract, a debt instrument issued to investors by governments, financial institutions, industrial and commercial enterprises, etc. to raise funds by borrowing directly from society, while promising to pay interest at a certain rate and repay the principal on agreed terms.
Government bonds are debt instruments issued by the government to fundraise and promise to pay interest and repay principal over a certain period of time, specifically including state bonds, i.e., central government bonds, local government bonds and government guaranteed bonds, the most important of which are government bonds.
International bonds International bonds are bonds issued by a government, financial institution, business enterprise or national organization to raise and finance funds in foreign financial markets and are denominated in foreign currency.
Stocks and bonds are the most common investment products. Many people have been exposed to stocks, but few people can understand bonds.
When it comes to bonds, there are always a series of question marks: what is a bond, whether it is worth investing, where to buy bonds... Bonds seem far away from us. In fact, bonds are a very basic investment product, which is also very convenient for investment. For most people, investing in bonds is more appropriate than investing in stocks. Why?
This article will introduce you to bonds, bond investment, and the importance of bonds in household asset management (the importance may exceed your imagination).