Unformatted text preview: el would yield a value that incorporates these rights
20 Bond A bond is a longterm debt security for which the issuer (who has borrowed certain amount of money) promises to make periodic (annually or semiannually) interest payments and to pay back the borrowed amount (principal) on predetermined dates. Bondholders are creditors to the issuer and have prior claims to the firm’s earnings and to its assets in the event of liquidation. Most bonds are fixedincome securities because they typically have fixed interest 21
21 BondKazakhstan MEAKAM – government special bonds of Ministry of Finance of Kazakhstan with 10 years of maturity MEIKAM government treasury bonds (MOF)of Kazakhstan indexed to inflation MEKAM government treasury bonds of Ministry of Finance of Kazakhstan with all types of maturity MEKKAM government shortterm treasury bonds of Ministry of Finance of Kazakhstan with up to 1year maturity MEOKAM government middleterm treasury bonds of Ministry of Finance of the Republic of Kazakhstan with from 1year to 10year maturities. 22
22 Characteristics of Bond Par Value
Par value, also called the face value or maturity value, is the no...
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