Question-11: How does the yield related between long-term and short-term bond?

Answer: There is no specific relationship, it varies as, at any given point in time, the yield offered on a long-term bond may be greater than, less than, or equal to the yield offered on a short-term bond.

Question-12: Is it possible that bond’s maturity can be changed, once bond is issued?

Answer: Yes, it is possible and the investor should be aware of any provisions that modify, or permit the issuer to modify, the maturity of a bond.

Question-13: What do you mean by term bonds?

Answer: The bond or issue which has fixed term are known as term bonds.

Question-14: How does the corporate bonds maturity can change or updated?

Answer: Corporate bonds which sometimes also referred to as “corporates” are typically term bonds, which are usually arranged such a way that the issuing firm either can or must retire the debt early, in full or in part. For instance,

• Call privileges: In this case it gives the issuer a call privilege, which allows the issuing firm to redeem/cease the bond before the scheduled maturity under certain conditions.

Question-15: Can Municipal bonds or U.S. government can have call privileges?

Answer: It is still seen that Municipal bonds can have call privileges but not the U.S. government. These call privilege bonds are also known as callable bond.