GROUP

PRESENTATION

By:Group 1
MEET OUR GROUPS

IAN ALBANTE

JELLIE ORLANDA

ANGELO AGNOTE
MARYJOY ARBADO
MADELYN QUILIT
 TOPICS
1.WHAT ARE BONDS
2.CORPORATE
BONDS
3.DIFFERENCE OF
STOCK AND BONDS
WHAT ARE BONDS?
Bonds are debt securities that are issued by
corporations, municipalities, and governments to
raise capital. When an entity issues a bond, it is
essentially borrowing money from investors. In
exchange for purchasing the bond, the investor
receives periodic interest payments, known as
coupon payments, over the life of the bond. At
the end of the bond's term, the investor receives
the face value of the bond, also known as the
principal or par value.
CHARACTERISTICS OF BONDS
Face value: Bonds have a face value, which is
the amount of money that the bond issuer
will pay to the investor when the bond
matures. This is also known as the par value.

Yield: The yield on a bond is the return that an investor

can expect to receive from the bond. It is calculated by
dividing the coupon payment by the price of the bond.
The yield can fluctuate based on changes in the bond's
price and interest rates.
ADVANTAGE
Fixed income: Bonds provide a fixed rate
of return, which is paid to investors at
regular intervals until the bond matures.
This provides investors with a predictable
source of income.
2. Lower risk: Bonds are generally
considered to be less risky than stocks,
as they are not subject to the same
market forces that affect stock prices.
The value of a bond is largely determined
by interest rates and the creditworthiness
of the bond issuer.
DISADVANTAGE
Add a Lower returns: Bonds generally
provide lower returns compared to
stocks and other securities, as they are
considered to be less risky.
. Interest rate risk: The value of a bond
can be affected by changes in interest
rates. If interest rates rise, the value
of existing bonds will decrease, and
vice versa.
CORPORATE
BONDS
 what is corporate bonds?
Corporate bonds are debt securities
issued by corporations to raise capital
for various purposes, such as funding
expansion projects, refinancing
existing debt, or financing mergers and
acquisitions. When you invest in a
corporate bond, you are essentially
lending money to the issuing company
in exchange for regular interest
payments and the return of the
principal amount at maturity.
Corporate bonds are typically
considered less risky than stocks but
riskier than government bonds. The
creditworthiness of the issuing
company determines the level of risk
associated with the bond. Companies
with higher credit ratings are
considered more stable and are
therefore likely to offer lower interest
rates on their bonds compared to
companies with lower credit ratings.
Maturity Date: Corporate
bonds have a specified
maturity date, which is
the date when the issuer
is obligated to repay the
principal amount to the
bondholders. Maturities
can range from a few
years to several decades.
 Market Price: Corporate bonds are
traded in the secondary market, and
their prices can fluctuate based on
changes in interest rates, credit ratings,
and investor demand. The market price
of a bond may be higher or lower than
its face value, depending on prevailing
market conditions.
 SECURED AND UNSECURED BONDS
Secured Corporate Bonds: Secured corporate bonds are backed
by specific assets or collateral of the issuing company. In the
event of default or bankruptcy, bondholders have a claim on the
specified assets, which can be sold to repay the bondholders.
These assets act as a form of security or protection for the
bondholders. Examples of assets that can be used as collateral
include real estate, equipment, inventory, or other valuable
assets owned by the company. Secured bonds are generally
considered less risky compared to unsecured bonds because
bondholders have a higher chance of recovering their
investment if the company defaults.
Unsecured Corporate Bonds (Debentures): Unsecured
corporate bonds, also known as debentures, are not backed
by specific collateral. Instead, they rely solely on the
creditworthiness and ability of the issuing company to fulfill
its payment obligations. In the event of default or
bankruptcy, bondholders of unsecured bonds are
considered general creditors and have a claim on the
company's assets after secured bondholders and other
creditors with higher priority. Unsecured bonds carry a
higher level of risk compared to secured bonds, as
bondholders have a lower chance of recovering their
investment in case of default
 Difference of
stocks and bond
 Here are somey differences
between stocks and bonds:

1. Ownership: Stocks represent

ownership in a company, while
bonds represent debt owed by an
issuer.
2. Risk and Return: Stocks have the
potential for higher returns but
also come with higher risk, while
bonds offer more stability and
predictable income.
3. Income Generation: Stocks may
provide dividends, while bonds
generate income through interest
payments.
4. Priority in Payments: In the
event of bankruptcy or
liquidation, bondholders
have a higher priority in
receiving payments
compared to stockholders.
5. Market Value: Stock prices
are determined by supply and
demand in the stock market,
while bond prices are
influenced by interest rates
and the creditworthiness of
the issuer.