Discuss different types and characteristics of debt instruments with specific reference of Bonds. Due to covid19 the equity market exhibits down move and hence he considers it a risky investment. down so he considers it is quite risky. Mr. Sikander looking to have stable income. Mr. Sikander is a retired person and just received Amount 40,000,000 on account of different funds. He is looking to buy Bonds. Mr. Saleem a friend of Sikander suggested him to buy MCB bonds. The bond has 25 years’ life and was issued 13 years ago. It pays 11.5 percent coupon rate with face value PKR 1050. Mr. Ahmed wants to make 14% profit from his investments.Write features of Zero-coupon bond and why do investors buy it when they offer nothing periodically?
Discuss different types and characteristics of debt instruments with specific reference of Bonds.
Due to covid19 the equity market exhibits down move and hence he considers it a risky investment. down so he considers it is quite risky. Mr. Sikander looking to have stable income. Mr. Sikander is a retired person and just received Amount 40,000,000 on account of different funds. He is looking to buy Bonds. Mr. Saleem a friend of Sikander suggested him to buy MCB bonds. The bond has 25 years’ life and was issued 13 years ago. It pays 11.5 percent coupon rate with face value PKR 1050. Mr. Ahmed wants to make 14% profit from his investments.Write features of Zero-coupon bond and why do investors buy it when they offer nothing periodically?
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Debt instruments are fixed income debt securities issued by government or other companies, who seek to raise money from public. In simple words, it is a type of loan to them, in which the investor gets fixed interest till the time of maturity and gets the principal amount at par at the same time.
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