Why does RBI issue or buyback government bonds?

Last week, I met little Sam. He is a school student, and doesn’t understand Finance much. But some day he wants to make it big in Finance, because he has heard that Finance has got something to do with mathematics, and he loves it. That’s not a bad reason at all, at least to start with, I thought.

Sam knows that bonds pay pre-fixed returns, unlike equities. He wanted to know something about bond mathematics and about bond trading strategies. He knew that corporate issue bonds because they need money for their projects, and operations. Little… Continue reading