Bond

• Legal “contract” to borrow from public markets
• Guarantee periodic interest payments (coupon, interest rate)
• Guarantee repayment of original sum (principle/face value) in full on a stipulated date (bond maturity date) — payment not met will
• Bearer bond — who has it gets the money
• Interest Rate
  • Economy
  • Credit worthiness (Moody’s, S&P, Fitch)
  • Risk

Issuing

• Brought to market through underwriters
• Par = issuing price at $1k.