The features that make up the bond index include the following:
- The maturity date or the length of time it will take for the investor's money to be returned
- The interest rate or annual yield
- The issuer or company issuing the bond
- The type of security, such as corporate, government, municipal etc
The features of a bond index include the following:
- The yield to maturity is the interest rate that an investor will receive on a bond if it is held to maturity.
- The current price of a bond is the price at which it trades in the market at any given moment.
- The duration of a bond is how long until the principal and interest are paid back.
A bond index is a type of financial instrument that is used to measure the performance of the bond market. The composition of the index is usually a combination of bonds from different countries and different sectors. A bond index can be seen as an indicator for investors who are looking for a low-risk, long-term investment.
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