Bonds can be with a fixed or floating coupon - i.e. with a fixed or floating interest rate.
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Fixed coupon (fixed interest rate) is the interest rate presented in the exact number terms. For example, 10 per cent of annual interest. The investor, while acquiring bonds with the fixed interest rate, knows what interest volume will be paid to him.
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The fixed interest bonds emission provides an opportunity:
- To invest in chosen currency - in Litas or in Euros.
- To earn stable annual interest after acquiring the bonds and keeping them for 28 days or longer since the bonds effective date.
- To invest for a flexible term - if you need money, you can sell the bonds before the redemption term without forfeiting the accrued interest. The bonds redemption price is established on a weekly basis.
- To pay a lower price by acquiring the bonds on the earliest distribution date possible.
- After selling the bonds before the redemption term, to reinvest the acquired funds together with the earned interest into more profitable financial instruments, if the interest rates continue to rise on the market.
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