... advance, and the bonds decrease in value. If default is declared, investors may lose their entire investment. Liquidity risk. If there are few buyers and sellers for a bond, it may not be possible to sell it at a favorable price. Inflation risk. If the yield on a bond is lower than the inflation rate, the investor's real return declines—the rise in prices reduces the purchasing power of the coupon payments. A default on a bond is the bankruptcy of the issuer: a situation in which it stops paying coupons to investors ...

What is a basis point and why do you need one in investing? In this article, we explain the basis point in plain English and explore its role in analyzing interest rates, bond yields, and spreads. You’ll learn why even small changes in basis points can have a significant impact on the value of an investment and how to use this unit of measurement to make financial decisions. What is a Basis Point? A basis point (bp) is ...

... high liquidity (traded on the Moscow Exchange) and clear risks: if held until maturity, none will “default.” OFZ are well-suited as the "anchor" for the conservative part of a portfolio, especially over a 1–3 year horizon. Corporate Bonds Yield. Corporate bonds can provide significantly higher coupons (up to 20–30% per annum from some issuers). For example, even reliable companies currently offer coupons of 22–25%, and experts expect reductions to 22–23% in 2025 (if the key rate ...

... the cost and yield of silver bonds calculated? The face value of SILV01 silver bonds is expressed in grams of silver, and its monetary equivalent is determined based on the official price of silver published by the Bank of Russia. This means that the yield of the bonds depends on both the coupon rate and fluctuations in the market price of silver. Key terms of the issue: Coupon rate: approximately 4% per annum, paid every 91 days. Circulation period: 5 years. Placement volume: up to 2.5 tons of silver. Thus, the ...

... dividends/coupons is also taxed at a PIT rate of 13%. Risks, Profitability, and Taxation Profitability: Short-term ruble investments typically yield around 15-20% annually. For example, deposits and OFZ yield approximately 18-19%. Riskier instruments—corporate bonds, stocks, and funds—may yield 20-30% and higher. Cryptocurrencies can bring hundreds of percent over individual periods, but these are exceptions and usually speculative in nature. Crowdlending offers investors returns of around 15-20% per annum. Risks: Inflation (9-10% in 2024) ...