Unlike stocks, bonds don’t give you ownership rights. They represent a loan from the buyer (you) to the issuer of the bond.
WHY BONDS MATTERS:
Bonds and other fixed-income securities play a critical role in an investor’s portfolio. Owning bonds helps to diversify a portfolio, as the bond market doesn’t rise or fall alongside the stock market. More important, bonds are generally less volatile then stocks, and are usually viewed as a “safer” investment.
Bonds affect the economy by determining interest rates. Bond investors choose among all the different types of bonds. They compare the risk versus reward offered by interest rates. Lower interest rates on bonds mean lower costs for things you buy on credit. That includes loans for cars, business expansion, or education. Most important, bonds affect mortgage interest rates. Lower mortgage rates mean you can afford a bigger house.
Bonds also affect the stock market. When interest rates rise, stocks look less attractive. They must offer a higher return to compensate for their higher risk.
SO…HOW BONDS WORK?
When companies or other entities need to raise money to finance new projects, maintain ongoing operations, or refinance existing debts, they may issue bonds directly to investors instead of obtaining loans from a bank. The indebted entity (issuer)issues a bond that contractually states the interest rate that will be paid and the time at which the loaned funds (bond principal) must be returned (maturity date). The interest rate, called the coupon rate or payment, is the return that bondholders earn for loaning their funds to the issuer.
The issuance price of a bond is typically set at par, usually $100 or $1,000 face value per individual bond. The actual market price of a bond depends on a number of factors including the credit quality of the issuer, the length of time until expiration, and the coupon rate compared to the general interest rate environment at the time.
Bonds are not risk free. It’s always possible — especially in the case of corporate bonds — for the borrower to default on the debt payments.
WHAT IS BONDS…???
A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer.
AND NEW PROJECT ABOUT BONDS HAPPEN.
So that, Twogap has establish the new projects just bonds. The new one bond has been built and developed. And be ready for launch into the crypto bond worlds.
This platform was built and developed by Twogap, the first place in Vietnam created a new era for Blockchain and Cryptocurrency world.
With the new era and new technology, this “hit” platform will be the greatest product for the company to control money and managed using distributed ledger technology.
Invest in bonds is less risk, this invests almost for an older person or retired, and people who live based on fixed-income.
Bond is the first platform of Twogap to offer to a public, global range of investors and that “what sets Twogap platform from other blockchain projects is that the entire bond process — from the creation to allocation and management throughout its life cycle to take place on the blockchain.”
The platform of Twogap will use a private version of the cryptocurrency in which validators must have permission. The computing infrastructure will run on the Microsoft cloud platform.
This isn’t a crypto launch but it shows that blockchain technology is being adopted. The bond platform of Twogap may win for a blockchain and crypto. This is the first step towards bringing the faster and cheaper automation in conventional manual bond processes.
All we need to do is watch the new era happens. And everything will be the greatest part of the new era.
To get well about THE NEW ERA OF Twogap
