Bonos

Bonos is a term most commonly encountered in Spanish-language finance. It is the plural form of bono, used to denote debt securities, commonly translated as bonds, which governments, municipalities, and corporations issue to raise capital. When investors purchase bonos, they lend money to the issuer in exchange for periodic interest payments and the return of principal at maturity. The key features of bonos include the issuer’s credit quality, coupon rate, maturity date, and payment frequency. Prices of bonos in the market reflect prevailing interest rates, expectations of inflation, and credit risk, which in turn determine yields. Common types include government bonos (sovereign bonds), corporate bonos, and specialized varieties such as convertible bonos or zero-coupon bonos. Fixed-rate bonos pay a constant coupon, while floating-rate bonos reset coupons periodically. Risk considerations include interest-rate risk, reinvestment risk, and default risk, all of which influence yield and price volatility. Bonos are typically traded on public bond markets or over the counter, with prices quoted as percentages of face value and yields quoted as percentages per year.

Beyond finance, Bonos may appear as a surname or place name in some regions, though such uses are unrelated to the financial term.