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NIPAMCHAIRMAN   -   PARAMDEEP SINGHCEO        -   NITISHA BHARDWAJCFO        -    ANJALICMO        -    MEENAKSHI PARNAMIC...
BONDS
 Bond is a debt securityin which the authorized issuer owes the holders a debt and is obliged to pay interest and repa...
WHAT IS A USE OF A BOND ? Bonds provide the borrower with external funds to financelong-term investments In the case of ...
BONDS AND STOCKS ARE BOTH SECURITIES BUT  THERE IS A MAJOR DIFERENCE IN BOTHStockholders have an equity stake in the comp...
TYPES OF BONDS INFRASTRUCTURE BONDSCAPITAL GAINS BONDSZERO COUPON BONDS
INFRASTRUCTURE BONDS They are same as other bonds available in investment marketDifference is only this the funds collec...
CAPITAL GAINS BONDSSect 54EC:•Any person•Tax exemption•Bonds issued by:   1. NHAI   2. REC•Payment 6 months•Lock in 3year•...
ZERO COUPON BONDS BONDS DEEP DISCOUNT DISCOUNT MATURITY LONGER MATURITY ->LESSER ISSUE PRICE NO CASH INFLOW
Bonds
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Bonds

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bonds and stocks

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Bonds

  1. 1. NIPAMCHAIRMAN - PARAMDEEP SINGHCEO - NITISHA BHARDWAJCFO - ANJALICMO - MEENAKSHI PARNAMICCO - MANIRAT
  2. 2. BONDS
  3. 3.  Bond is a debt securityin which the authorized issuer owes the holders a debt and is obliged to pay interest and repay the principal at a later date, termed maturityit is a formal contract to repay borrowed money with interest at fixedintervalsThe holder of bond is called lender ( creditor )The issuer of the bond is called borrower (lender) interest is termed as coupon
  4. 4. WHAT IS A USE OF A BOND ? Bonds provide the borrower with external funds to financelong-term investments In the case of government bonds, to finance currentexpenditure. Lender gets risk free Investment.
  5. 5. BONDS AND STOCKS ARE BOTH SECURITIES BUT THERE IS A MAJOR DIFERENCE IN BOTHStockholders have an equity stake in the company ( they are owners)Bondholders have credit stake in the company ( they are lenders )Bonds have maturity time ( redemption time )Stocks may be outstanding indefinitely.
  6. 6. TYPES OF BONDS INFRASTRUCTURE BONDSCAPITAL GAINS BONDSZERO COUPON BONDS
  7. 7. INFRASTRUCTURE BONDS They are same as other bonds available in investment marketDifference is only this the funds collected through the sale of these bonds is used forthe infrastructural development, highway projects, railways project. Have fixed rate of interestHave tax deduction upto 20,000 for 1 financial year ( 80 CCF )Long term investment , have maturity period 10-15 years Pan card , address proof , demat ac is required to apply.Only govt. companies can issue theseMajor provider IDFC ( infrastructure dev finance company )
  8. 8. CAPITAL GAINS BONDSSect 54EC:•Any person•Tax exemption•Bonds issued by: 1. NHAI 2. REC•Payment 6 months•Lock in 3year•GUARANTEED RETURNS
  9. 9. ZERO COUPON BONDS BONDS DEEP DISCOUNT DISCOUNT MATURITY LONGER MATURITY ->LESSER ISSUE PRICE NO CASH INFLOW

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