Demand For Bonds Factors In Cook
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State:
Multi-State
County:
Cook
Control #:
US-00415BG
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A Bond is a document with which one party promises to pay another within a specified amount of time. The term "demand" means that the principal plus any interest is due on demand by the bondholder rather than on a specific date. Bonds are used for many things, including borrowing money or guaranteeing payment of money. A bond can be given to secure performance of particular obligations, including the payment of money, or for purposes of indemnification. The validity of a "private" bond, payable upon demand, is determined by the same principles applicable to contracts generally. The purpose of the bond must not be contrary to public policy; it must be supported by a valuable consideration; and there must be a clear designation of the obligor and the obligee. A bond procured through fraud or duress may be unenforceable, but mistake on the part of the obligor as to the contents of a bond, or its legal effect, is not a defense to enforcement of the bond.
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Learn about how investors should evaluate bond performance. See how the maturity of a bond can impact its exposure to interest rate risk.An Economic Expansion. 2. Increase in Government Deficit. 3. What factors might increase the demand for bonds? As demand for bonds increases, so do bond prices and bondholder returns. The many different kinds of bonds. A discount factor for a particular term gives the value today, of one unit of currency due at the end of that term. Prices, Discount Factors, and Arbitrage. The factors that will shift the demand for bonds are: Inflation: High rates of inflation refer to people have more money in their hands.
