Kerala Infrastructure Investment Fund Board

The coupon rate of a bond is the fixed annual interest rate you will receive on its face value. It indicates how much regular income you can earn from the bond.

Yield to Maturity (YTM) is the total annual return you can expect from your bond investments if you hold them to maturity. It includes all coupon interest payments, any capital gain or loss if the bond is bought at above/below face value and the reinvestment of interest income.

The coupon rate is the fixed annual interest payment paid by the bond based on its face value, whereas Yield to Maturity (YTM) is the total annualised return expected if the bond is held until maturity, depending on its current market price.

Interest on bonds is paid at regular intervals (e.g, quarterly, semi-annually, and annually). The frequency of interest payments on your bonds is mentioned in the bond details.

Repayment priority indicates the predetermined and legal order in which the issuer repays its financial obligation in case of insolvency or bankruptcy. For example, bonds with higher priority are repaid before lower-priority (subordinated) bonds.

The credit rating of an issuer reflects its ability to repay interest and principal payments on time. A higher rating generally indicates lower credit risk, but no bond is completely risk-free.

Secured bonds are backed by specific assets owned by the issuer. Unsecured bonds are not backed by any specific assets; repayment depends entirely on the issuer's overall financial strength.

Collateral security refers to assets pledged by the issuer to investors to back its debt obligations. If the issuer defaults on the bonds, these assets can be used to recover dues.

Some bonds may have third-party or corporate guarantees. If a bond is marked as "Non-Guaranteed", the repayment depends solely on the issuer's ability to pay.

When the bonds reach maturity, you receive the full face value, i.e., the principal and the final interest payment.

Yes, you can sell bonds that are liquid and listed on the stock exchanges. However, the selling price may be higher or lower than the purchase price.

Bond prices fluctuate due to factors such as changes in interest rates, changes in the issuer's credit ratings, and market demand and supply.

Yes, the interest income earned from bonds is taxable as per your income tax slab.