High-Grade Convertible
Bonds
Tyler Barr
What is a Bond
A Bond is an agreement for people to
borrwer money for a certain of time and
the then the issuer receives a interest in
return. Usually the borrower is the Federal
Gov’t.
High-Grade Convertible bond
They are an investment-grade bond with a high rating. Like all
investment-grade bonds, high-grade bonds are considered sufficiently lowrisk that the law allows banks to invest in them. In addition to being lowrisk, high-grade bonds are low-return, greatly reducing the cost on the
issuer. U.S. Treasury and many municipal bonds are high-grade. See also:
Junk.
Risk-level/Return
The risk is really low and since the risk is low the
return is also little. This is a very safe investment.
Work Cited
•"High-Grade Bond Financial Definition of High-Grade Bond.
High-Grade Bond Finance Term by the Free Online
Dictionary." Financial Dictionary. Web. 08 Mar. 2010.
<http://financial-dictionary.thefreedictionary.com/HighGrade+Bond>.