A long-term debt instrument obliging the issuer to pay to the holder the principal and interest under the previously issued Prospect by dynamics stated therein (usually semiannual and annual coupons).
Bonds might be issued by the state, local authority (community bonds), commercial banks and companies (corporate bonds).
By investing in bonds, the client is exposed to a credit risk that the bond issuer will default on payments of interest and principal, interest rate risk, geopolitical risks, currency risk and reinvestment risk.
Government bonds are issued by the Ministry of Finance of the Republic of Macedonia. They are subscribed at auctions announced by the Ministry of Finance, and can be bought by national and international natural and legal persons. Government bonds may be traded in the secondary market. Authorized domestic banks has the right to trade government bonds.
Denationalization bonds issued by the Republic of Macedonia are listed in the Macedonian Stock Exchange.