korkoinstrumentit

Korkoinstrumentit, also known as interest-bearing instruments, are financial assets that provide their holders with periodic interest payments and the return of the principal amount at maturity. These instruments are a fundamental component of the fixed-income market. Common examples include government bonds, corporate bonds, certificates of deposit (CDs), and treasury bills.

The primary characteristic of a korkoinstrumentti is its predictable income stream. The interest rate, or coupon rate, is typically fixed at the time of issuance, although some instruments may have variable rates. The issuer of the instrument promises to pay a specified amount of interest at regular intervals, such as semi-annually or annually. Upon the maturity date, the issuer repays the original principal amount to the bondholder.

The value of korkoinstrumentit can fluctuate in the secondary market due to changes in prevailing interest rates. When market interest rates rise, the value of existing bonds with lower fixed rates tends to fall, as newer bonds offer more attractive yields. Conversely, when interest rates fall, the value of existing bonds typically increases. Investors purchase korkoinstrumentit for various reasons, including capital preservation, income generation, and diversification of their investment portfolios. The risk associated with these instruments varies depending on the creditworthiness of the issuer and the maturity of the instrument.