{"id":171,"date":"2019-04-22T07:55:03","date_gmt":"2019-04-22T07:55:03","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=171"},"modified":"2026-05-26T13:58:09","modified_gmt":"2026-05-26T13:58:09","slug":"8-key-bond-terminologies-explained-for-potential-bond-investors","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/","title":{"rendered":"8 Terminologies You Must Know Before You Invest in Bonds"},"content":{"rendered":"\n<p>Bonds are considered to be complex because of some of the terminologies associated with this investment. But actually, they\u2019re just simple investments in the debt market (To know about what are bonds and debentures, refer to this interesting article). A new bond investor may get confused by some of the jargons associated with a bond investment. We bring you a brief list of the most important bond jargon that you should understand and evaluate while making your investment decision.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Coupon_in_Bonds\" >Coupon in Bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Face_Value_in_Bonds\" >Face Value in Bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Market_Value_in_Bonds\" >Market Value in Bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Bond_Issuer\" >Bond Issuer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Payment_Frequency\" >Payment Frequency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Maturity_Of_Bond\" >Maturity Of Bond<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Yield_to_Maturity_YTM\" >Yield to Maturity (YTM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Rating_In_Bonds\" >Rating In Bonds<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#Conclusion\" >Conclusion<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Coupon_in_Bonds\"><\/span>Coupon in Bonds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A coupon payment is the amount of annual interest that will be paid to the bondholder on an annual basis. The coupon payment per bond unit is:<\/p>\n\n\n\n<p>Coupon Payment = Face Value of Bond X Coupon Rate of the Bond in %<\/p>\n\n\n\n<p>This amount will be paid as per a pre-defined schedule \u2013 monthly, quarterly, bi-annually, or annually until the date of maturity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Face_Value_in_Bonds\"><\/span><strong style=\"font-size: 26px;\">Face Value<\/strong> in Bonds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Face value is the designated value per unit of a bond when the bond is issued by the bond issuer. In the Indian <a href=\"https:\/\/goldenpi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">bond market<\/a>, the face value for most of the bonds is Rs.1000.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Value_in_Bonds\"><\/span><strong style=\"font-size: 26px;\">Market Value<\/strong> in Bonds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The market value of a <a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-things-to-consider-when-holding-bonds-to-maturity\/\">bond<\/a> is the value at which the bond is currently being bought and sold in the market. This happens after the bond has been issued at the face value. The market value of a bond can be either at a premium or at a discount to the face value. The value depends on the overall economic conditions, bond issuer industry state, and the bond issuer\u2019s business condition.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bond_Issuer\"><\/span><strong style=\"font-size: 26px;\">Bond Issuer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The bond issuer is the bond issuing company or the borrower who sells <a href=\"https:\/\/goldenpi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">bonds<\/a> with the promise of regular interest payments and return of the principal amount on maturity. The bondholder is the lender who lends money to the bond issuer in exchange of a bond.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Payment_Frequency\"><\/span><strong style=\"font-size: 26px;\">Payment Frequency<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The payment frequency or<a href=\"https:\/\/goldenpi.com\/blog\/government-securities\/what-is-coupon-payment\/\"> payment<\/a> schedule of bonds is the dates on which the interest is paid to bondholders by bond issuing companies. The payment frequency can vary from monthly, quarterly, bi-annually to annually. Some payment dates can be customized by the bondholder.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Maturity_Of_Bond\"><\/span><strong style=\"font-size: 26px;\">Maturity<\/strong> Of Bond<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The bond issuing company agrees to pay back the face value of the bond to the bondholder on a pre-defined date. This is called the bond <a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/what-are-staggered-maturity-bonds\/\">maturity<\/a> date. Once the principal amount is returned, the bondholder stops receiving the interest payments as well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Yield_to_Maturity_YTM\"><\/span><strong style=\"font-size: 26px;\">Yield to Maturity (YTM)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yield to maturity is the effective returns that an investor gets by investing in a bond and then holding it till maturity. Simply put, the yield, measured in %, is the interest rate at which an investor invests money in the bond to generate the cash flows from the bond till it matures.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Example:<\/h4>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Say, an investor invests Rs&nbsp; <span style=\"font-weight: 400;\">950 <\/span>(market value) in a bond. The various parameters of the bond are:<\/p>\n\n\n\n<p>Face Value per unit = Rs 1000 ; Coupon Rate = 10% ; Payment Schedule = 5 years on 30 th April.<\/p>\n\n\n\n<p>The payments that the investor will receive are :<\/p>\n\n\n\n<p>Rs 100 on 30 th April every year till the next five years. On maturity in the 5th year, the investor gets back the face value = Rs 1000.<\/p>\n\n\n\n<p>Then his effective returns or yield to maturity will be <span style=\"font-weight: 400;\">11.352 %<\/span> approximately.<\/p>\n<\/blockquote>\n\n\n\n<p>The effective annual returns help in making a realistic comparison of different rates of returns of bonds. For example, if a bond receives a quarterly payment of interest, then due to compounding the effective annual returns will be higher than the actual interest returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rating_In_Bonds\"><\/span><strong style=\"font-size: 26px;\">Rating<\/strong> In Bonds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A bond rating is a grade given to a bond depending on its creditworthiness. The ratings can vary from AAA to AA to A and further down. AAA is considered the highest rating and bonds with this rating are generally considered the safest.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/30101503\/ezgif.com-gif-maker-9-1.gif\" alt=\"8 Terminologies You Must Know Before You Invest in Bonds\"\/><\/figure>\n<\/div>\n\n\n<p>Any bond that has credit ratings of BBB and above are labeled as investment-grade bonds or safe bonds in India. This rating is given to the company (bond issuer) by rating agencies on the basis of various financial factors of the bond issuer. Some of the most commonly considered factors are the issuer\u2019s previous financial strength or ability to repay the principal and interest on time.<br>\n<\/p>\n\n\n\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>While bonds are a very simple investment option, having a better understanding of the financial terms associated with them will make you more confident about your investment decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779803594399\"><strong class=\"schema-faq-question\">Q1. What are bond terminologies and why are they important?<\/strong> <p class=\"schema-faq-answer\">Bond terminologies help investors understand how bonds work, how returns are calculated, and the risks involved. Knowing these terms makes it easier to compare different bond investments and make informed decisions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1779803622833\"><strong class=\"schema-faq-question\">Q2. What is the difference between coupon rate and bond yield?<\/strong> <p class=\"schema-faq-answer\">The coupon rate is the fixed interest paid by the bond issuer, while bond yield represents the actual return an investor earns based on the bond\u2019s current market price.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1779803657273\"><strong class=\"schema-faq-question\">Q3. What does bond maturity mean?<\/strong> <p class=\"schema-faq-answer\">Bond maturity refers to the date when the issuer repays the principal amount to investors. Bonds can have short-term, medium-term, or long-term maturities.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1779803685690\"><strong class=\"schema-faq-question\">Q4. What is credit rating in bonds?<\/strong> <p class=\"schema-faq-answer\">A credit rating indicates the financial strength of the bond issuer and their ability to repay debt. Higher-rated bonds are considered safer investments.<br><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1779803726389\"><strong class=\"schema-faq-question\">Q5. <strong>What is a bond investment?<\/strong><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">When you invest in bonds, you lend money to a company or government. In return, you receive regular interest payments along with the return of principal at maturity. As per industry understanding, bonds are considered lower risk than equities. However, they may carry credit and interest rate risks.<\/span><\/p> <\/div> <\/div>\n\n\n\n<p>Latest Updated- 26-05-2026<\/p>\n\n\n\n<script type=\"application\/ld+json\">\n[\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"NewsArticle\",\n    \"@id\": \"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#newsarticle\",\n    \"mainEntityOfPage\": {\n      \"@type\": \"WebPage\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/\"\n    },\n    \"headline\": \"8 Terminologies You Must Know Before You Invest in Bonds\",\n    \"description\": \"Master the essential jargon used in the fixed-income market. Learn about face value, coupon payments, market variations, and yield to maturity (YTM) for smart bond investing in India.\",\n    \"image\": \"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png\",\n    \"datePublished\": \"2019-04-22T07:55:03+00:00\",\n    \"dateModified\": \"2026-05-26T13:55:53+00:00\",\n    \"publishingPrinciples\": \"https:\/\/goldenpi.com\/terms-and-conditions\",\n    \"commentCount\": 2,\n    \"comment\": [\n      {\n        \"@type\": \"Comment\",\n        \"dateCreated\": \"2022-08-02T04:32:48+00:00\",\n        \"text\": \"Thank you for notifying our glitches, it is really appreciable and keep reading our blogs.\",\n        \"author\": {\n          \"@type\": \"Organization\",\n          \"name\": \"GoldenPi\"\n        }\n      },\n      {\n        \"@type\": \"Comment\",\n        \"dateCreated\": \"2022-08-10T10:12:40+00:00\",\n        \"text\": \"Thank you for your kind words and keep reading our blogs.\",\n        \"author\": {\n          \"@type\": \"Organization\",\n          \"name\": \"GoldenPi\"\n        }\n      }\n    ],\n    \"author\": {\n      \"@type\": \"Person\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/abhijit-roy\",\n      \"name\": \"Abhijit Roy\",\n      \"jobTitle\": \"CEO & Co-Founder\",\n      \"url\": \"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/\",\n      \"description\": \"With over 15 years of experience across fixed income and debt markets, Abhijit Roy brings deep domain expertise along with a strong focus on investor education and transparency. He is an alumnus of IIT Kharagpur and IIM Calcutta.\",\n      \"worksFor\": {\n        \"@type\": \"Organization\",\n        \"name\": \"GoldenPi\"\n      },\n      \"sameAs\": [\n        \"https:\/\/www.linkedin.com\/company\/goldenpi\/\",\n        \"https:\/\/x.com\/GoldenPiTech\"\n      ]\n    },\n    \"publisher\": {\n      \"@type\": \"Organization\",\n      \"name\": \"GoldenPi\",\n      \"logo\": {\n        \"@type\": \"ImageObject\",\n        \"url\": \"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/05\/18105628\/GoldenPi-Lean-Logo.png\"\n      }\n    },\n    \"about\": [\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Bond Terminology\",\n        \"alternateName\": \"Fixed Income Glossary\"\n      },\n      {\n        \"@type\": \"FinancialProduct\",\n        \"name\": \"Yield to Maturity\",\n        \"alternateName\": \"YTM\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Yield_to_maturity\"\n      }\n    ],\n    \"mentions\": [\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Coupon Rate\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Coupon\"\n      },\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Face Value\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Par_value\"\n      },\n      {\n        \"@type\": \"Thing\",\n        \"name\": \"Credit Rating\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Credit_rating\"\n      },\n      {\n        \"@type\": \"Organization\",\n        \"name\": \"CRISIL\",\n        \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/CRISIL\"\n      }\n    ]\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"BreadcrumbList\",\n    \"itemListElement\": [\n      {\n        \"@type\": \"ListItem\",\n        \"position\": 1,\n        \"name\": \"Home\",\n        \"item\": \"https:\/\/goldenpi.com\/blog\/\"\n      },\n      {\n        \"@type\": \"ListItem\",\n        \"position\": 2,\n        \"name\": \"Essentials\",\n        \"item\": \"https:\/\/goldenpi.com\/blog\/essentials\/\"\n      },\n      {\n        \"@type\": \"ListItem\",\n        \"position\": 3,\n        \"name\": \"Bond Market\",\n        \"item\": \"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/\"\n      },\n      {\n        \"@type\": \"ListItem\",\n        \"position\": 4,\n        \"name\": \"8 Terminologies You Must Know Before You Invest in Bonds\",\n        \"item\": \"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/\"\n      }\n    ]\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What are bond terminologies and why are they important?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Bond terminologies help investors understand how bonds work, how returns are calculated, and the risks involved. Knowing these terms makes it easier to compare different bond investments and make informed decisions.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is the difference between coupon rate and bond yield?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"The coupon rate is the fixed interest paid by the bond issuer based on face value, while bond yield represents the actual annualized return an investor earns based on the bond\u2019s current market price.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What does bond maturity mean?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"Bond maturity refers to the designated date when the issuer repays the final principal amount back to investors. Bonds can fall into short-term, medium-term, or long-term maturity frameworks.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is credit rating in bonds?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"A credit rating indicates the financial strength of the bond issuer and their ability to repay debt on time. Higher-rated bonds (like AAA or AA tranches) are considered safer investments.\"\n        }\n      },\n      {\n        \"@type\": \"Question\",\n        \"name\": \"What is a bond investment?\",\n        \"acceptedAnswer\": {\n          \"@type\": \"Answer\",\n          \"text\": \"When you invest in bonds, you lend money to a company or government entity. In return, you receive regular interest payments (coupons) along with the return of principal at maturity. Bonds are generally considered lower risk than equities, though they carry specific credit and interest rate risks.\"\n        }\n      }\n    ]\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"Dataset\",\n    \"name\": \"Fixed Income Fundamental Parameters Matrix\",\n    \"description\": \"Factual dataset framework structuring core bond parameters including core valuation matrices, coupon allocation frequencies, and safety grade indicators.\",\n    \"variableMeasured\": [\n      \"Core Valuations (Par vs. Market Value)\",\n      \"Yield Calculations (YTM Expressions)\",\n      \"Payment Windows\",\n      \"Risk Indexing Metrics\"\n    ]\n  }\n]\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Bonds are considered to be complex because of some of the terminologies associated with this investment. But actually, they\u2019re just simple investments&hellip;<\/p>\n","protected":false},"author":4,"featured_media":12105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[24],"tags":[34,44],"class_list":["post-171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-market","tag-retail-investors","tag-glossary"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>8 Bond Terminologies: You Must Know Before You Invest in Bonds<\/title>\n<meta name=\"description\" content=\"Jargon used in bond market are explained and listed here. To understand bond market, learn bonds terminology now.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"8 Bond Terminologies: You Must Know Before You Invest in Bonds\" \/>\n<meta property=\"og:description\" content=\"Jargon used in bond market are explained and listed here. To understand bond market, learn bonds terminology now.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:author\" content=\"goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-22T07:55:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-26T13:58:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png\" \/>\n\t<meta property=\"og:image:width\" content=\"731\" \/>\n\t<meta property=\"og:image:height\" content=\"347\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:site\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/\"},\"author\":{\"name\":\"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/#\\\/schema\\\/person\\\/7b7afc706617dbf29357675946045722\"},\"headline\":\"8 Terminologies You Must Know Before You Invest in Bonds\",\"datePublished\":\"2019-04-22T07:55:03+00:00\",\"dateModified\":\"2026-05-26T13:58:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/\"},\"wordCount\":925,\"commentCount\":2,\"image\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d2zny4996dl67j.cloudfront.net\\\/blogs\\\/wp-content\\\/uploads\\\/2019\\\/04\\\/25105956\\\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png\",\"keywords\":[\"Retail Investors\",\"Glossary\"],\"articleSection\":[\"Bond Market\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/\",\"url\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/\",\"name\":\"8 Bond Terminologies: You Must Know Before You Invest in Bonds\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d2zny4996dl67j.cloudfront.net\\\/blogs\\\/wp-content\\\/uploads\\\/2019\\\/04\\\/25105956\\\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png\",\"datePublished\":\"2019-04-22T07:55:03+00:00\",\"dateModified\":\"2026-05-26T13:58:09+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/#\\\/schema\\\/person\\\/7b7afc706617dbf29357675946045722\"},\"description\":\"Jargon used in bond market are explained and listed here. To understand bond market, learn bonds terminology now.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d2zny4996dl67j.cloudfront.net\\\/blogs\\\/wp-content\\\/uploads\\\/2019\\\/04\\\/25105956\\\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png\",\"contentUrl\":\"https:\\\/\\\/d2zny4996dl67j.cloudfront.net\\\/blogs\\\/wp-content\\\/uploads\\\/2019\\\/04\\\/25105956\\\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png\",\"width\":731,\"height\":347,\"caption\":\"8 Terms You Must Know Before Investing\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/essentials\\\/bond-market\\\/8-key-bond-terminologies-explained-for-potential-bond-investors\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"8 Terminologies You Must Know Before You Invest in Bonds\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/\",\"name\":\"GoldenPi | Blogs\",\"description\":\"All about bonds online in India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/#\\\/schema\\\/person\\\/7b7afc706617dbf29357675946045722\",\"name\":\"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=mm&r=g\",\"caption\":\"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi\"},\"description\":\"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.\",\"sameAs\":[\"goldenpitech\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/goldenpi\\\/\",\"https:\\\/\\\/x.com\\\/GoldenPiTech\"],\"url\":\"https:\\\/\\\/goldenpi.com\\\/blog\\\/author\\\/goldenpi\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"8 Bond Terminologies: You Must Know Before You Invest in Bonds","description":"Jargon used in bond market are explained and listed here. To understand bond market, learn bonds terminology now.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/","og_locale":"en_US","og_type":"article","og_title":"8 Bond Terminologies: You Must Know Before You Invest in Bonds","og_description":"Jargon used in bond market are explained and listed here. To understand bond market, learn bonds terminology now.","og_url":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/","og_site_name":"GoldenPi | Blogs","article_publisher":"https:\/\/www.facebook.com\/goldenpitech","article_author":"goldenpitech","article_published_time":"2019-04-22T07:55:03+00:00","article_modified_time":"2026-05-26T13:58:09+00:00","og_image":[{"width":731,"height":347,"url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png","type":"image\/png"}],"author":"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi","twitter_card":"summary_large_image","twitter_creator":"@GoldenPiTech","twitter_site":"@GoldenPiTech","twitter_misc":{"Written by":"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#article","isPartOf":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/"},"author":{"name":"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722"},"headline":"8 Terminologies You Must Know Before You Invest in Bonds","datePublished":"2019-04-22T07:55:03+00:00","dateModified":"2026-05-26T13:58:09+00:00","mainEntityOfPage":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/"},"wordCount":925,"commentCount":2,"image":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#primaryimage"},"thumbnailUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png","keywords":["Retail Investors","Glossary"],"articleSection":["Bond Market"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/","url":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/","name":"8 Bond Terminologies: You Must Know Before You Invest in Bonds","isPartOf":{"@id":"https:\/\/goldenpi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#primaryimage"},"image":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#primaryimage"},"thumbnailUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png","datePublished":"2019-04-22T07:55:03+00:00","dateModified":"2026-05-26T13:58:09+00:00","author":{"@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722"},"description":"Jargon used in bond market are explained and listed here. To understand bond market, learn bonds terminology now.","breadcrumb":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#primaryimage","url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png","contentUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2019\/04\/25105956\/Bond-Terminologies_-8-Terms-You-Must-Know-Before-Investing.png","width":731,"height":347,"caption":"8 Terms You Must Know Before Investing"},{"@type":"BreadcrumbList","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/8-key-bond-terminologies-explained-for-potential-bond-investors\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldenpi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"8 Terminologies You Must Know Before You Invest in Bonds"}]},{"@type":"WebSite","@id":"https:\/\/goldenpi.com\/blog\/#website","url":"https:\/\/goldenpi.com\/blog\/","name":"GoldenPi | Blogs","description":"All about bonds online in India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldenpi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722","name":"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=mm&r=g","caption":"Abhijit Roy | CEO &amp; CO-Founder - GoldenPi"},"description":"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.","sameAs":["goldenpitech","https:\/\/www.linkedin.com\/company\/goldenpi\/","https:\/\/x.com\/GoldenPiTech"],"url":"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/comments?post=171"}],"version-history":[{"count":20,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/171\/revisions"}],"predecessor-version":[{"id":13717,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/171\/revisions\/13717"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media\/12105"}],"wp:attachment":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media?parent=171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/categories?post=171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/tags?post=171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}