Corporate Bonds, NCD, SGB
why i am not able to see SGB (Sovereign Gold Bond) into my Demat account?
SGB can be bought through primary public issue or through secondary market . While applying to SGBs through primary issues, you need DP ID and correct bank details. Fill correct DP ID in the application form else SGB will not be credited into your ...
When will I receive bond units in my Demat?
Once your order is confirmed, bond units will be credited to your Demat account on T+1 day i.e. next trading day.
Where will I receive my interest payment?
The Interest payouts from Bonds get credited to the Bond Holder’s Primary Bank account that is linked to his/her Demat account.
Where will I receive my interest payment?
The Interest payouts from Bonds get credited to the Bond Holder’s Bank account that is attached to his/her Demat account.
How will I receive the interest payment?
The interest payment will hit the bondholder’s bank account associated with the Demat account as per the predefined schedule.
Why do I need to pay accrued interest?
If the present bondholder sells his Bonds, he has to get the interest until the date of the sale. Here can be a time gap between the last interest payout he received until he sells them. As the next interest payout goes to the buyer, the buyer must ...
What are the differences between Coupon and Yield?
Coupon Rate: Definition: The coupon rate is the annual interest rate paid by the bond issuer on the bond's face value. It is fixed and does not change throughout the bond's life. Formula: Coupon Rate =Annual Coupon Payment /Face Value of the Bond*100 ...
Why is the Yield different from the coupon?
The yield and the coupon rate of a bond are two distinct concepts that serve different purposes: 1. Coupon Rate: The coupon rate of a bond is the fixed annual interest payment expressed as a percentage of the bond's face value. It is determined at ...
Are returns earned from my bond investment taxable?
Yes, returns earned from bond investments are generally taxable. The taxation of bond returns depends on various factors, including the type of bond, the investor's tax status, and the jurisdiction's tax laws. 1. Interest Income: Most bonds pay ...
What is the difference between YTC, YTM, and Coupon?
1. Yield to Call (YTC): Yield to Call is the yield an investor can expect to receive if the issuer calls a bond before its maturity date. YTC considers the bond's current market price, the call price, and the time remaining until the call date. It ...
Why does the Yield of a Bond fluctuate?
The yield is the effective interest rate that one earns from bonds. Factors Affecting Bond Yields: 1. Interest Rate Movements: Fluctuations in prevailing interest rates influence bond yields. Rising rates make existing bonds less attractive, causing ...
What is the relationship between bond yield and bond price?
The relationship between bond yield and bond price is inverse: when bond prices rise, yields fall, and when bond prices fall, yields rise. This relationship is governed by the formula: Yield = Annual Coupon Payment/Current Bond Price Here's how it ...
Why do I see a change in the settlement amount?
Comprised of market price and accrued interest, bond price, also known as settlement amount is displayed on the website. Changes in the settlement amount for bonds can occur due to fluctuations in market prices, adjustments for accrued interest, ...
How is 'Face value' different from 'Investment Amount'?
Face Value: - The face value of a financial instrument, such as a bond or a share, represents the nominal value assigned to it by the issuer. - It indicates the original value of the security as stated in the issuing documents and does not ...
What are the Primary Market and Secondary Market?
The following is the fundamental difference between the Primary Market and Secondary Market . Aspect Primary Market Secondary Market Definition The primary market is where new securities are issued. Companies and governments sell these securities to ...
How to find DP ID and Client ID?
To find your DP ID and Client ID: 1. Refer to Documentation: Check the welcome kit or account opening documents provided by your Depository Participant (DP). Your DP ID and Client ID are usually mentioned there. 2. Review Statements: Look at your ...
What are bonds and debentures?
Bonds are debt securities issued by governments, municipalities, corporations, or other entities to raise capital. When investors purchase a bond, they essentially lend money to the issuer in exchange for periodic interest payments, known as coupon ...
Why should I invest in the Fixed Income Market (Bonds and Debentures)?
Investing in the Fixed Income Market, including bonds and debentures, offers several advantages. Firstly, these instruments typically provide a steady income stream through regular interest payments, making them an attractive option for investors ...
Why do I see a change in the settlement amount?
The settlement amount of a bond, displayed on the website, consists of both the market price and accrued interest, which can cause fluctuations. Here's how it works: 1. Market Price: The market price of a bond changes daily due to market dynamics, ...