Many people know the situation when you need a specific amount of money and she is taken to the debt. Every once in his life faced with this. It is worth considering that the money may need not only people but also firms and organizations, as well as the government. Organizations face this problem when they require much more funds than the banking institution.
In such cases the best option – attracting investors. Investors are physical or legal persons who invest in the organization expecting from it an equal amount of profit. For these purposes, to issue bonds. Under the bond refers to a security which is presented in the form of a loan. For some time the organization is obliged to return the investor borrowed funds. All the nuances are negotiated between the two parties. And only after informed consent is the so-called contract. Without signatures on paper will not have any effect.
The Value of a bond can be any, which could put future investor, or the firm appoints its own.
There are two types of securities:
Yield depends on the economic situation in the country and on the ability of an owner organization to manage the funds received.
The Percentage that is paid to the investor, negotiated in advance, as well as the schedule of payments. The payment of the debt is made once a year, every 6 months or every 3 months.
There are several ways of payments:
Bond Yields is characterized by a number of factors that are entirely dependent on the conditions offered by the business owner:
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To Be an investor can not only for commercial organizations. The state also has the right to issue securities. The funds raised allow us to implement large projects at the state level either to Supplement the budget. Speaking in simple language, government bonds represent the amount of funds that takes money from ordinary citizens. The investment, the state promises to return in full plus interest.
First, this type of security. They are no different from other types of bonds, they are also subject to the actual nominal cost that allows a profit to investors. The amount of such income is determined at the level of the Ministry of Finance.
Unlike commercial organizations, bonds of the state safer. There are risks in both options. As an example, you can use the situation of Soviet times, when there was a depreciation funds.
Government Bonds are guaranteed to make a profit. Such investments will also be repaid over several years. The period can vary from 1 year to 30 years. Wait for the profits not necessary. Securities can be sold to anyone.
There are two ways of investing:
For Those who want to get a good percentage of the investment will be unprofitable to buy Russian bonds from the state. Rate on the interest rate the same as from a regular contribution to the Bank – up to 11% per year.
Despite this, it is possible to make a profit. The percentage is fixed annually, you can make a profit every 6 months.
The Russian bonds can be bought and sold freely as other types of securities. Prices vary and this can make.
Federal loan Bonds for physical persons – this is a kind of bonds issued in rubles only by the Ministry of Finance. Securities are issued in the form of coupons, which provide for the payment of interest. Such loans can be classified as government bonds.
Depending on the profit you can allocate:
Types of bonds depending on who produces:
Federal loan Bonds for physical persons – bonds from States with a high percentage, allowing you to obtain good profit to investors.
In comparison with conventional exchange-traded bonds are available features:
Quotation bonds – set size value for the purchase of securities, available for sale on stock exchanges. All meet the standards of the law.
All operations are performed by a special Commission. All information is mandatory apply in specialized printed editions.
The Official level of quotations of bonds for a specific period. Such rates are used to calculate outside of the exchange. The size of the quotes depends on the economic indicators of the currency from the position of organizations in the market of goods and services.
The Price of a bond represents the value of the cash flow that is expected at the moment. This flow includes two components: coupon payments paid on the bonds.
To Determine the value of it is possible, it stipulates a number of conditions:
When the sale of the bonds have a value which differs from the nominal price. The price can be affected by:
In the case when the owner of the bond sells securities, all rights of orders are transferred to the new owner. Including the ability to dispose of the funds accumulated in the time of finding the bonds from the previous owner.
All international bonds can be divided into foreign bonds and Eurobonds.
Sell all the Foreign countries that attract borrowed funds in local currency. For example, large corporations in France are selling bonds in the UK. They are issued in pounds sterling. The main buyers are local investors. As a guarantor in favor of the banking syndicate.
The Main differences:
Eurobonds will be distributed by multinational banking syndicate. Securities can be issued in several currencies simultaneously. This allows you to minimize the risks associated with the operations of the currency exchange. The resulting income tax. This type of investment is relevant to those who pay high income taxes.
There are a number of properties that can be attributed to the securities:
Income from invested funds is calculated as the difference betweennominal bond yields and inflation. Before you take into account all possible risks, you should choose the length of time to decide will it go on real or nominal income.
The yield on the par value determined in advance. The investor only has to wait for the maturity of the bonds. If you do not take into account inflation, these investments have no risk.
When forming a portfolio, regardless of type, be sure to analyze the revenue potential and risks of all financial indicators. On the territory of the Russian Federation nominal incomes are completely official. They are used to calculate income on state securities market. They are also common in the commercial paper markets.
The Market yield of bonds is the profit that is received by the investor from investments in securities. Calculate the income very simple. For this you will need to divide the number of purchased coupons. In that case, if the bond were bought at par, the level of income equal to the rate the coupon. Income can vary depending on the variation of the exchange rate.
Experts formulate the ratio of bonds to get income in the following way: in the time of rising prices for securities of income falls and Vice versa.
For each type of income, you can apply the appropriate formula for calculating the bond yield.
Let's Consider the notation:
Assume that income will amount to 11.75 percent a year, while the rate at the time of purchase equal to 95 rubles, then the amount of current income will be 12 rubles 37 kopecks.
Thus, when calculating income securities portfolio the formula is the same formula used for the classical calculation.
The coupon Rate on the bonds – interest income annually. For example, if the rate is 12 percent annually, and the cost of securities 1 thousand rubles, for the calendar year have the opportunity to receive 120 rubles.
There are several options of coupons:
Any person who holds the securities, must pay a tax of 13 percent annually.
Rates of return of Federal bonds are of two types: fixed and variable. Constant rates called fixed. They are set for each coupon for a certain period. The size of the bet depends on the time of issue of coupons. Variable rates are entirely dependent on the obtained official data that depend on inflation. The interest rate depends on Central Bank of the Russian Federation.
The Income is generated from two indices:
In those cases, if the investor buys a coupon that has a value above face value, it is possible to suffer significant losses.
When applying for Federal loans, the accumulation of profit on the coupon. To date on payments there is an increase in the value of the coupon. When there is resale, the owner accounts for these moments.
Be Sure to consider the taxation system, as each type of income mandatory is subject to tax. If a coupon all the time owns one person, then the tax rate will be 15 percent of the profits. The sale coupon you have to pay about 35 percent for the difference in cost.
For making good profits these moments must be taken into account. All activities in this area is regulated on the legislative level.
Current bond yields – the size of the payment coupons annually. These figures do not take into account the income of the investor, which depends on the varying prices at the time of maturity or sale.
To assess the effectiveness of the result, you can use a calculation that includes the size premium to the cost of the purchased coupon.
To reduce the risks when investing in securities, it is best to choose organizationthat offer a short time to complete repayment of the loan. Fluctuations in value can be observed only in the period when there is economic crisis in the country.
Despite this, the cost is very quickly returned depending on the economic situation improves or when approaching the date of repayment of the investment Deposit.
To Minimize the risk also may be the case, if you apply to large companies and organizations that have proven themselves from the best side among the investors. But it must be borne in mind that the income will be significantly lower than small businesses.
To Determine the yield of the bonds is possible according to the following formula: r = C/P.
Consider marking indicators:
For example, the coupon was purchased at a price of 20 thousand rubles, at the moment, the value of the coupon increased to 80 thousand rubles. Thus, the size of income is determined as 25 percent.
Before you purchase bonds, you need to understand in details the available types of securities. It is useful to consider the income. All this will allow to assess their capabilities and understand what amount of profit you can get in investing. In such cases it is better not to hurry and carefully check all.
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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
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