Bond is a document issued by a company that needs financing, under which it obtained a loan. The company issuing the bond is called a debtor, and that a lender has is called (it provides a loan). Bonds are financial assets with fixed interest. On loan repayment, the company undertakes to pay, also, interest, fixed obligation at issue.

Bond contains:

* Name of the issuer;
* Coupon or coupon rate (expressed as the percentage share of the nominal value to be paid at certain obligation holder);
* Maturity – the time of expiry of the loan obligation and withdrawal (the date on which it will be bought back by the issuer);
* Nominal value – the amount shown on the title, which gives the holder a form of credit issuer and that will collect at maturity;
* Signature of the person authorized by the issuer;
* Special prints, to prevent counterfeiting (security features).

Bond may be registered if it is entered on behalf of owner, or “bearer”. The holder of a bond is called obligatar. He is a credit to the issuer and the right to receive income called interest, but has no rights and responsibilities on the business issuer (debtor).

Therefore, the bonds are debt securities with certain income and usually fixed. The main issuers of bonds are general government (central and local), and order is being issued to cover the budget deficit, the financing of investment is important for the community.

Most bonds pay interest only until maturity (quarterly or half-yearly depending on the specifications of the issue prospectus) with the last time interest in full and return the amount borrowed. Some bonds pay but at intervals (specified in the prospectus of issue) and the main parties. In general, an investor has lost or gained due to differences in the coupon (interest rate paid by the issuer) and the amount of interest charged on the money market at that time, between that interest and the market price of the obligation exists an inverse relationship.

Although theoretically the flow of cash that it receives the holder of bonds is not influenced by the issuer’s revenues, it is obvious that the limit if they are too low, investors may return the money or delay payments may cease. Therefore the issue prospectus should be read through the guarantees provided issuer (which may vary from one part of the assets to ensure the simple name of the issuer of the asset).