Commercial Bonds - What Are They?

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Commercial Bonds - What Are They?
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• These are titles that represent a debt, which the
  issuing entity has with the natural or legal
  persons that acquire them, they are also
  considered as a financing option for companies,
  which is different from the usual bank credit. In
  this case, the issuing company acquires the
  obligation to return the amount of the investment
  to the bondholder after the period of time has
  elapsed, plus a sum of money that is equivalent
  to the interest that it agreed to pay.
• Given the need to obtain resources in the form of
  money, by companies and governments of the
  countries, in order to fully carry out activities
  and projects, these together with the markets
  have developed different types of tools that
  allow obtaining of these resources Bonus.

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• Commercial bonds are a way of obtaining credit,
  companies, and governments through financial
  institutions issue the bonds in the form of
  titles or certificates through which they agree
  to return a specific amount of money to the buyer
  of the bond.
• What should we take into account when choosing
  the voucher?
• To know which is the investment option that best
  suits our objectives and needs, it is necessary
  to take into account the types of profitability
  that exist and the risks to which we are exposed
  in each one of them.
• Before making an investment decision, we must be
  clear about the following elements, depending on
  the objectives and terms of our investment.

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• Short-term investment This is used when we need
  to have money in the coming months to pay a
  planned expense.
• Long-term investment This is used when we expect
  to have money in the future, such as the purchase
  of a home.
• Commercial bonds How are they classified in
  offshore Bank?
• They are classified as fixed income securities
  since the investor knows in advance what his
  profit will be on the payment date. The
  commercial bonds will only be paid once the
  agreed time has expired, but they can be sold at
  a discount on their value before the expiration
  date.

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• Bonuses Bonus Types and Classification
• In general terms, there are two types of bonds
  Those that pay periodic interest or coupons
  during the term of the investment and those that
  only pay on the maturity date, which is known as
  Zero-coupon bonds.
• The main types of bonds that are offered and
  traded in the market are described below, but
  first, we will consider their classification
• Who can issue commercial bonds?
• The issuance of bonds can be carried out by a
  private financial organization such as companies,
  offshore Bank, etc. or public entities such as
  central banks, public companies, etc., with the
  aim of attracting investors to become holders of
  said bonds in exchange for capital in offshore
  Bank, which in turn seek not to lose the value of
  their assets in the face of inflation, or seek to
  generate future profitability at maturity.

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