Fin

While bonds are safer compared to equities, they are not a completely risk-free investment. These include the following risks:
1. Interest Rate Risk: It has already been established that the price of bonds moves in an inverse relation with interest rates. This means that if interest rates are increased, then the market value of a bond will decline; consequently, sellers of such a bond before its maturity would suffer losses.Credit Risk: The chance that interest or principal payments will not be made because the issuer defaults. For lower-credit-rated issuers, "junk" bonds, credit risk is hig

The price of a bond is responsive to prevailing interest rates in the market. This means that an increase in interest rates lowers the price of a bond and vice versa. This occurs because newly sold bonds issued at a higher rate of interest will offer more attractive yields as compared to those with lower rates of interest and therefore will be less in demand. Individuals may sell those existing bonds at a discount to bring the price down to where it is in line with this new market rate. Conversely, if interest rates decline, existing bonds with higher coupon rates become more attractive, whic

Investment banking is a financial service provided by a finance company or investment banks to help the Government, organisation, investor, and clients in their investment plan. Investment bank work as intermediaries between the investor and the clients, providing advice or guidance based on their understanding to both the parties. It is a financial service that seeks to raise money form government, organisations, and individuals. One of the services that provided by investment banking is underwriting, which requires demanding price ranges equity on behalf of consumer or traders in the form