3.7 Lessons learnt

  • Bonds have particular characteristics and can hardly be compared with investing in shares.
  • Bonds are listed in a nominal value representing the amount on which interest is paid to the investor. If the price is equal to the nominal value, that price is expressed as 100%
  • Bonds don’t pay out dividends, but you are entitled to receive interest payments. These payments are called coupons. The coupon gets paid on the coupon date, which again impacts the eventual yield.