How to choose a bond for investment?
Choosing a bond for investment involves analyzing the issuer’s creditworthiness, evaluating the bond’s yield, duration, and liquidity, and considering your investment goals and risk tolerance. Credit ratings from rating agencies, such as CRISIL, ICRA provide an assessment of the issuer’s creditworthiness. Yield measures the annual return on the investment, and duration is the bond’s sensitivity to interest rate changes. Liquidity is the ease of buying or selling the bond on the secondary market. Read more here