Corporate and Government bonds

Page 1

1 .

2 .

Government Bonds

Government bonds are issued by the central/ union or state governments to fund various government projects.

Corporate Bonds

1 .

The government pays interest on the face value of the bond annually.

2 .

3. Government bonds are considered as one of the safest investment options because they carry sovereign guarantees.

Government bonds are issued by the central/ union or state governments to fund various government projects.

The government pays interest on the face value of the bond annually.

3. Government bonds are considered as one of the safest investment options because they carry sovereign guarantees.

4. Government bonds give less yield returns than corporate bonds because the risk in these instruments is lower.

4. Government bonds give less yield returns than corporate bonds because the risk in these instruments is lower.

5. Government bonds are generally issued for terms ranging from 5 to 30 years. Since it is a long tenure, it loses its relevance.

5. Government bonds are generally issued for terms ranging from 5 to 30 years. Since it is a long tenure, it loses its relevance.

To know more, visit: https://goldenpi.com/blog/essentials/bond-market/difference-between-corporate-and-governments-bonds/

THANK YOU

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.