2. The worse the security of bonds, the higher the coupon rate, otherwise no one will buy them. The credibility and security of banks are obviously better than that of companies, so the interest rate of bonds issued by companies is definitely higher than that of banks; The short-term coupon rate can be set lower, and the long-term coupon rate must be set higher, because people usually choose to buy short-term ones under the same interest rate.
Brief introduction of bonds;
1 is a security issued by debtors such as government, enterprises and banks in order to raise funds and promise creditors to repay the principal and interest on a specified date according to legal procedures. Bond/debenture is a kind of financial contract, which is a debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society and promise to pay interest at a certain interest rate and repay the principal according to the agreed terms. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.
2. Bond is a kind of securities. Because the interest of bonds is usually determined in advance, bonds are a kind of fixed-interest securities. In countries and regions with developed financial markets, bonds can be listed and circulated. Although there are many kinds of bonds, they all contain some basic elements in content. These elements refer to the basic contents that must be stated in the bonds issued, and are the main agreements that clarify the rights and obligations of creditors and debtors.
3. The face value of the bonds. The face value of bonds refers to the face value of bonds, which is the principal amount that the issuer should repay to the bondholders after the maturity of bonds, and is also the calculation basis for enterprises to pay interest to bondholders on schedule. The face value of bonds is not necessarily the same as the actual issue price of bonds. If the issue price is greater than the face value, it is called premium issue; If it is lower than the face value, it is called discount; And if it is equivalent, it is called parity issue.