What is the role of bond index?

QuestionsWhat is the role of bond index?
Akshaj Singh asked 1 year ago
   
3 Answers
Deepak Goyal answered 1 year ago
Bond index is the market value of a bond that reflects the market interest rate. It is calculated by taking the current price of a bond and dividing it by its face value. The role of bond index is to provide a benchmark for interest rates. It allows investors to compare different bonds in terms of their return on investment, so they can determine which investment offers the best return for their money.
Priya Vishwas answered 1 year ago
Bond index is a measure of the price fluctuations of a bond's principal value with respect to the change in interest rates. Bonds are assets that an investor can buy in return for regular payments over time. It is important to understand what type of bonds you are buying and what their risk is. The role of bond index is to help investors find bonds that provide an appropriate risk level based on the interest rate changes.  
Nikhil Rawat answered 1 year ago
The bond index is a measure of the performance of a bond. It is calculated by taking into account the interest rate, time to maturity, and yield. The bond index can be used in different ways such as comparing the performance of different bonds or to assess the riskiness of an investment.