A bond is a fixed income instrument in which investor loans money to an entity (Corporate or Government) which borrows the funds for a defined period of time at a variable or fixed interest rate.
Coupon rate refers to the Rate of Interest payable by the issuer to the investor on periodic basis.
Face value of the bond is determined by the issuer at the time of issue. It may be as low as Rs.100 or as high as Rs.10 lakhs per bond.
It refers to the date on which the bond matures, or the date on which the borrower has agreed to repay the principal amount to the lender or bond holder.
The rate of return that an investor would earn if an investor buys the bond at current price & held it until maturity.
A call option provides issuer the right to redeem a bond before its maturity date i.e on Call date. Whereas a put option provides investor the right to give back bond to issuer before its maturity date i.e. on Put date.
Perpetual bond is a bond with no fixed maturity date. Typically these bonds are issued with call option to be exercised by issuer on call date.
If call option not get exercised on call date, at defined interval and terms issuer can call back security.
The rate of return that an investor would earn if an investor buys a Callable/Puttable bond at current market price & hold it until the Call/Put date.