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Enjoy periodic coupons and redemption at maturity
A bond is a recognition of the issuing body's debt. The bond has a fixed term, an interest rate that entitles the holder to periodic coupons and a redemption at maturity.
ING Self Invest gives you access to a wide range of bonds.
A bond has a fixed borrowing term. In practice, its issuer borrows the funds for a set period of time, and you can then take out one or several bonds. Each bond represents a participation in this loan.
A bond is a recognition of the issuer's debt to you, the bondholder. You can therefore receive any interest in the form of coupons. In this case the applied interest rate may be fixed or variable.
A bond gives a right to repayment of the initial capital invested by the Issuer at Maturity. In general, this is 100% of the nominal value of the bond (excluding fees and charges), except in the event of bankrupty or default by the issuer.
The main risks are market risk, insolvency risk of the Issuer, risk of capital losses, exchange rate risk and liquidity risk. You can find this information further down this page under 'Main risks'.
Let's take an issuer. This could be: a large private company (Belgian or foreign), a bank, an institution, a public organisation (Belgian or foreign) or an international organisation.
This issuer issues a long-term loan facility; in other words it borrows money. You can then subscribe to one or several bonds. Each bond represents a participation in this loan. In concrete terms, a bond is a recognition of the issuer's debt to you, the bondholder. You can then receive any interest (coupons).
A bond has:
Bonds are issued on the primary market. It is possible to subscribe to them during a subscription period. A bond may be issued at par (issue price = 100% of nominal value), above par (e.g. 102%) or below par (e.g. 98%).
Once they have been issued, bonds may be traded (purchased/sold) on the secondary market, where prices vary daily: when interest rates rise, prices fall and vice-versa.
For all the costs and taxes associated with bonds investmenst, we refer to: