ESSENTIAL FEATURES OF BOND

Bond Principal ~Also known as the issuer par value or the face value of the bond. ~A typical par value is RM1000. Coupon ~Coupon is the interest payment paid to the bondholder. ~The coupon rate or the interest rate is fixed. ~The dollar amount of the interest payment can be easily determined by multiplying the interest rate with the face value of the bond. Term Of Interest Payment ~Interest on bond is usually paid either annually or semiannually for a fixed number of years. ~ The terms of interest payment is subjected to the agreement specified in the indenture.

Bond maturity ~It is date on which a bond matures. ~When the bond matures the principal or face value of the bond must be repaid to the bondholder Call features ~the call features is specified in the bond indenture