Bonds Table
Description
Welcome to the bond market! Here, you can access all available bonds for purchase, as well as selling any of the ones you currently hold. In Finance Interactive, there are both government bonds and corporate bonds. The former are always issued by the Government entity, while corporate bonds are issued by the corresponding company that wishes to raise debt money from capital markets.
Each row represents an individual bond issuance by either the government or a corporation. Each row contains the following data:
- Initial Maturity (Years): The time, in years, from bond issuance to its maturity date.
- Months to maturity: The number of months on which a bond’s principal is repaid and interest payments cease.
- Issuing entity: either the government or a corporation.
- Available to public: the amount (in face value terms) of bonds that are available to purchase.
- Credit rating: the credit rating of the issuer entity.
- Coupon rate: the annual rate of coupon payment relative to its face value. For example, a coupon rate of 5% over a $100M in face value amounts to $5M of coupon payments per year. Depending on the issuer, it is split into 2 or 4 payments (twice a year or quarterly).
- Yield: the annual return on a bond (see the Bond page for details about how it is computed).
- Price: the price of each individual bond. All bonds in this game have a face value of $10,000 and it is the initial price. This means that if a company issues $10M in bonds, it has to issue 1,000 bonds.
- Owned: the amount of individual bonds held by you.
- Unrealized profit (loss): computed as the difference between the current market value of the bonds you hold and the cost basis of the investment.
- Buy button: click on this button to buy the selected type of bond.
Strategy tips
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Real-world parallel
If applicable. Explain differences and similitudes with the real-world version.