Issuer of Bond
The issuer is the party that borrows the money by issuing the bond. It can be the federal, state, or municipal government, a corporation, or a supranational organization, like the World Bank. Good creditworthiness of the issuer is important because it determines the inherent risk of the bond. 5. Yield: Yield is the expected return on investment of a bond. It is usually expressed as a percentage value and can be determined in one of several ways. There are two most prevalent ways: The current yield is defined as an annual interest payment divided by the current market price of the bond, or the yield to maturity (YTM), which takes into account the price of the bond, coupon payments, and the time to maturity.