This intrument gives more returns when intetest rate falls! Check it out!!
What is worse than hair fall? Interest rate fall! Jokes apart, the continuous fall of Bank Interest rates now a days is a big concern for everyone especially for the senior citizens who keep most of their money in the Fixed deposits and runs monthly expenses from the interest income. So is there any way out? Yes! Because Fixed Deposit may give less return with the falling interest rates but there are other instruments which ride on the back of the tide. Investing in them may give better returns at the time of falling interest rate scenario. One of them is Bonds. Bond is a financial instrument which is issued by Government, Banks, Financial institutions or Companies. This have a fixed maturity and it is issued at a fixed price or face value and pays interest at a certain rate (i.e.: Coupon Rate) throughout its tenure annually/Half Yearly/ Quarterly just like Fixed Deposits. Let me give an example. A company is issuing a 8.5% Annually 10 year Bond with face value of 10...