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This is the number
of years over which the issuer of the bond has promised to meet the
conditions and obligations of the bond issue. During this time, the
bondholder is paid the promised coupon payments and it also indicates the
time period remaining before the bondholder is paid back the principal. The
term to maturity also affects the bond yield and the bond price.
Remarks: Corporate Bonds or loan stocks are long term
fixed interest income debt securities income debt securities issued by
companies. They usually have a lifespan of five years and are redeemable at
par value on maturity. Bond and loan stock issues vary in many ways and have
many optional features. Some are secured by collateral, others are backed by
guarantees; yet others have no collateral support and are only unsecured
promises to pay. In addition, the bond indenture may provide that the bond
may be redeemable at a specified price.
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