第十章 债券基础

Chapter 10 Bond BasicsNew Words and ExpressionsBackgroundWhat is a bond?A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest.What’s the difference between bonds and stocks？Bonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely.Issuing bondsBonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors.Syndicate ：A group of banks authorized to be involved as the creditor of part of loan transaction. 辛迪加被授权作为债权人参与部分贷款事务的银行联合组织。

In the case of Government Bonds, these are usually issued by auctions, where both members of the public and banks may bid for bond.Bond RatingBond rating agencies, such as Moody's, Standard and Poor's, provide evaluations of the default risk of many corporate bonds in the form of bond ratings. 债券评级机构，如穆迪、“标准普尔”等，用债券评级的方式给许多公司进行违约风险评估。

Moody's for example, rates bonds on a 9-point scale from Aaa, Aa through C, where Aaa-rated bonds have the lowest expected default risk. 例如，穆迪公司将债券分为9级，从Aaa，Aa 一直到C，其中Aaa级债券的预期违约风险最低。

As we konw the yields on bonds increase as the risk of default increases, reflecting the positive relationship between risk and required return. 随着违约风险的增加，债券收益也增加。

这表明风险和要求报酬率是正相关的。

Types of bonds1、Fixed Rate BondA bond where the coupon’s interest rate remains fixed for the entire term. Interest rate movements affect the bond’s price not the coupon.固定利率债券在整个债券有效期限内，债券的息票利率保持不变的债券。

利率的变动影响债券的价格而非息票。

2、Floating Rate Note(FRN)A bond where the coupon’s interest rate is changed periodically in accordance to a specific market rate.浮动利率债券（FRN）息票利率根据一定市场利率而发生周期性变化的债券。

3、Zero Coupon BondA bond that is issued and sold at a discount, pays no coupons and provides payment of the face value at maturity.零息债券打折出售的到期不支付利息只支付面值的债券。

4、Junk BondA bond that is rated by a ratings agency as being below investment grade and investment in the bond is high risk.垃圾债券被信用级别评定机构评定为低于投资级别的投资风险高的债券。

5、Investment GradeBond rated BBB and above or Baa and above by Standard & Poor’s and Moody’s Investor Service respectively投资级别分别被标准普尔和穆迪投资者服务公司评定为BBB以上或Baa以上的债券。

6、Municipal bondMunicipal bond is a bond issued by a state, U.S. Territory, city, local government, or their agencies. Interest income received by holders of municipal bonds is often exempt from the federal income tax and from the income tax of the state in which they are issued.市政债券是美国最受欢迎的避税投资工具之一。

这些债券是由州及地方政府或者他们的代理机构发行的，可以免交联邦所得税，而且，如果投资者是居住在债券发行地的话，很可能还可以免交州或者地方所得税。

参考译文第十五章债券基础介绍提起投资，人们首先会想起股票市场。

毕竟，股票令人兴奋。

报纸甚至当地的晚间新闻主播都详细追踪报道股票市场的变化。

投资者在股票市场上获利的故事不足为奇。

而债券，在另一方面，并不具有股票同样的吸引力。

这个术语似乎很神秘而且困扰着普通人。

另外，债券更加令人生厌---尤其当处于凶猛的牛市，它们似乎会更显得不及股票重要。

尽管如此，它在熊市来临时让投资者想起了他的优点，安全而稳定。

事实上，对于大多数投资者来说，最明智的莫过于至少拿一部分资金投资债券。

本章希望能帮助你认识到债券是否适合你,我们将向你介绍这些基本知识，例如债券是什么，债券的不同种类及它们的重要特征，怎样运作，怎样购买等。

债券有许多特征你需要了解，所有这些特征在决定债券价值和多大比例的债权在投资组合中是合适的都起到举足轻重的作用。

票面价值票面价值（又称面值或本金），是指当债券到期应付时持有者能够收回的货币总量,新发行的债券通常按票面价值出售,公司债券的票面价值通常是1000美元，政府债券的面值远高于此。

令人们混淆的是票面价值并不等同于债券的价值.债券的价格会根据许多变量而发生波动，当债券在高于其面值的水平上交易，就被称之为溢价出售；当债券在低于其面值的水平上交易，就被称之为折价出售。

Answers for chapter 15ⅠAnswer the following questions in English:1. When is bond said to be selling at a premium and when is bond said to be selling at a discount?When a bond trades at a price above the face value, it is said to be selling at a premium. When a bond sells below face value, it is said to be selling at a discount.2. What is the most important source of risk for bonds in general? Explain.Interest rates are the most important factor in the pricing of bonds, so interest rate will be most important source of risk.3. What is the major advantage for municipal bonds?The major advantage to municipal is that the returns are free from federal tax. Furthermore, local governments will sometimes make their debt non-taxable for residents, thus making some municipal bonds completely tax free.4. What is the coupon?The coupon is the amount the bondholder will receive as interest payments. It's called a "coupon" because sometimes there are physical coupons on the bond that you tear off and redeem for interest.5. What are callable bonds?A bond can be redeemed by the issuer prior to its maturity. Usually a premium is paid to the bond owner when the bond is called. Also known as a "redeemable bond".6. How to classify fixed-income securities in general?In general, fixed-income securities are classified according to the length of time before maturity. These are the three main categories:Bills - debt securities maturing in less than one year. Notes - debt securities maturing in one to 10 years. Bonds - debt securities maturing in more than 10 years.7. What are zero-coupon bonds?This is a type of bond that makes no coupon payments but instead is issued at a considerable discount to par value.8. What do bond brokers do for investors?Bond brokers support full service for investors, most bond transactions can be completed through a full service or discount brokerage.ⅡFill in the each blank with an appropriate word or expression:1. Interest Rate Risk is the number one source of risk to fixed-income investors, because it’s the major cause of price volatility in the bond market.2. In the case of bonds, interest rate risk translates into market risk: The behavior of interest rate, in general, affects all bonds and cuts across all sectors of the market-even the U.S. Treasury market.3. When market interest rates rise, bond prices fall, and vice versa. And as interest rates become more volatile, so do bond prices.4. This is a type of bond that makes no coupon payments but instead is issued at a considerable discount to par value. For example, let's say a zero-coupon bond with a $1,000 par value and 10 years to maturity is trading at $600; you'd be paying $600 today for a bond that will be worth $1,000 in 10 years.5. Bonds have a number of characteristics of which you need to be aware. All of these factors play a role in determining the value of a bond and the extent to which it fits in your portfolio.6. In general, fixed-income securities are classified according to the length of time before maturity.ⅢTranslate the following sentences and passage into English:1. 债券买卖是指交易双方以约定的价格买卖一定金额的债券并在规定的清算时间内办理债券款项交割的交易方式。