Characteristics of Bonds
➦ A bond is a fixed charge bearing long-term debt security issued by the government and non-government organization to collect long-term debt capital in which borrower agrees to make payments of interest and principal on the specific dates to the holder of the bond instrument.
➦ There are different types of bonds which are introduced by the different organisation with the development of a market.
➦ As it is difficult to generalise the same characteristics of all types of the debt instrument.
➦ However, some common characteristics of all debt instruments are as follows;