[Verse 1]
When you buy a bond you're lending money out
To governments and companies without a doubt
Par value is the face amount they'll pay you back
Coupon rate determines interest on your track
Maturity date tells you when the loan will end
These basic features help you understand and lend
[Chorus]
Bonds are loans that pay you back
Coupon Maturity Par Value track
Government Corporate Municipal too
Fixed or floating rates for you
Primary markets where they're born
Secondary where they're traded on
[Verse 2]
Call provisions let the issuer pay early
Put provisions help you sell back clearly
Sinking funds set money aside each year
Conversion features make stocks appear
These special rights can change your return
Important details that you need to learn
[Chorus]
Bonds are loans that pay you back
Coupon Maturity Par Value track
Government Corporate Municipal too
Fixed or floating rates for you
Primary markets where they're born
Secondary where they're traded on
[Verse 3]
Treasury bonds from government are safe
Corporate bonds pay more but risks you face
Municipal bonds from cities tax-free gains
Sovereign bonds from foreign nations' reins
Supranational from world banks flow
Each type has risks you need to know
[Chorus]
Bonds are loans that pay you back
Coupon Maturity Par Value track
Government Corporate Municipal too
Fixed or floating rates for you
Primary markets where they're born
Secondary where they're traded on
[Bridge]
Zero coupon bonds pay nothing till the end
Inflation-linked adjust when prices bend
Securitized bonds bundle loans together
MBS and ABS through any weather
Bond indenture is the legal contract
Covenants protect what you've enacted
[Verse 4]
Primary markets where new bonds debut
Investment banks help price them through
Secondary markets where trading flows
Over the counter is how it mostly goes
No central exchange like stocks you see
Dealers make markets for you and me
[Chorus]
Bonds are loans that pay you back
Coupon Maturity Par Value track
Government Corporate Municipal too
Fixed or floating rates for you
Primary markets where they're born
Secondary where they're traded on
[Outro]
From corporate debt to government bills
Bond markets fund the world that builds
Remember features markets and types
Your CFA knowledge takes new heights