Initial Public Offering (IPO) dates indicate the time period within which investor can apply for the bond (acceptance of application form)

A coupon rate is the yield paid by a fixed income security, which is the annual coupon payments divided by the bond’s face or par value.

Bonds carry a credit rating assigned by a Credit Rating agency. An example of a rating is CRISIL has rated the bonds ‘CRISIL AAA/Stable’. The higher the rating the safer the bond. AAA Stable is the highest rating possible therefore the bond is the safest.

The total returns the customer will receive by holding the bond until maturity

Bond’s yield is the rate of return it generates to an investor. This can be best understood by the example below:

Assume that a bond with face value of INR 1000 and 6.5% coupon purchased at par has current yield of 6.5%.

• If the price falls to INR 950 the yield would rise to 6.84% (INR 65 interest divided by purchase price of INR 950)

• If the price increases to INR INR 1100, the yield drops to 5.90% (INR 65 divided by purchase price)