OBVEZNICE U REPUBLICI HRVATSKOJ

Bonds together with stocks are the most famous and popular type of securities. We can find them on all major exchanges and in almost every country in the world. Bonds are far more conservative securities than stocks and their prices are not subject to such dramatic fluctuations as stock prices. Historically, bonds are the oldest form of financial instruments. Bonds are one type of loan. When taking out a loan,the borrower issues a certificate under which the investor is entitled to interest at a predetermined interest rate called a coupon and agrees to repay the principal in nominal or real terms in the future. The bond issue establishes a debt-to-credit relationship between the issuer and the recipient. Investors can lend government bonds by buying bonds, as well as companies and other issuers, receiving a fixed rate of interest for their service, which is paid at predefined intervals to maturity.