Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.

Have an account? Sign In

Have an account? Sign In Now

Sign In

Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.

Sign Up Here

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

Sorry, you do not have a permission to ask a question, You must login to ask question. Please subscribe to paid membership

Forgot Password?

Don't have account, Sign Up Here
Please subscribe to paid membership

Sorry, you do not have a permission to add a post. Please subscribe to paid membership

Forgot Password?

Don't have account, Sign Up Here
Please subscribe to paid membership
Sign InSign Up

Bondsindia Forum

Bondsindia Forum Logo Bondsindia Forum Logo

Bondsindia Forum Navigation

Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • User Profile
  • Communities
  • Questions
    • New Questions
    • Trending Questions
    • Must read Questions
    • Hot Questions
  • Polls
  • Tags
  • Help
Home/ Questions/Q 2305
In Process
Dheeraj
  • 0
Dheeraj
Asked: May 15, 20232023-05-15T12:07:00+05:30 2023-05-15T12:07:00+05:30In: Bonds

What is risk difference between Central Goverment Bond and State Goverment Bond?

  • 0

What is risk difference between Central Goverment Bond and State Goverment Bond?

bonds interest ratebonds marketcentral goverment bondstate goverment bond
  • 1 1 Answer
  • 0 Followers
  • 0
Answer
Share
  • Facebook

    1 Answer

    • Voted
    • Oldest
    • Recent
    • Random
    1. Anonymous
      2023-05-19T16:55:21+05:30Added an answer on May 19, 2023 at 4:55 pm

      The risk of default is the primary distinction between central government bonds and state government bonds. Because the central government has a considerably stronger financial position than the state governments, central government bonds are thought to be much safer than state government bonds. StaRead more

      The risk of default is the primary distinction between central government bonds and state government bonds. Because the central government has a considerably stronger financial position than the state governments, central government bonds are thought to be much safer than state government bonds. State governments have a lower tax basis and are unable to create money, whereas the federal government has a larger revenue base and is able to do so. Therefore, interest rates on central government bonds are often lower than those on state government bonds.

      Here is a table that summarizes the key differences between central government bonds and state government bonds:

      Feature Central Government Bonds State Government Bonds
      Issuer Central government State government
      Financial strength Stronger Weaker
      Default risk Lower Higher
      Interest rates Lower Higher

      It is crucial to remember that no bond can be guaranteed not to default. The prevailing consensus is that central government bonds are significantly safer than state government obligations. Central government bonds are a good option for investors searching for a secure investment.

      When considering whether to buy central government bonds or state government bonds, investors should take the following into account:

      • The economic outlook for the country as a whole. If the economy is strong, the central government is more likely to be able to repay its debts.
      • The financial condition of the state government. If the state government is in financial trouble, it is more likely to default on its bonds.
      • The interest rate environment. If interest rates are rising, investors may be willing to accept a higher risk in order to earn a higher yield.

      Ultimately, the decision of whether to invest in central government bonds or state government bonds is a personal one. Investors should carefully consider all of the factors involved before making a decision.

      See less
      • 0
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp

    Leave an answer
    Cancel reply

    You must login to add an answer.

    Forgot Password?

    Need An Account, Sign Up Here

    Sidebar

    Ask A Question

    Stats

    • Questions 106
    • Answers 252
    • Best Answer 1
    • Users 75
    • Popular
    • Answers
    • Rajiv Kumar

      Is Sovereign gold bond taxable after 5 years?

      • 9 Answers
    • Bheema Bharti

      Which investment gives the highest return?

      • 8 Answers
    • devlalit42

      What is the difference coupon rate and yield rate?

      • 7 Answers
    • Anuj Pandey
      Anuj Pandey added an answer To trade in the secondary bond market, you can follow… May 29, 2023 at 2:11 pm
    • harshit
      harshit added an answer Yes, you can do SIP in bonds. There are a… May 22, 2023 at 2:45 pm
    • Anonymous added an answer The risk of default is the primary distinction between central… May 19, 2023 at 4:55 pm

    Related Questions

    • Nikita Khatri

      Does bond with fixed maturities have call and put option?

      • 0 Answers
    • Chanda Kumari

      How to trade in secondary bond market?

      • 1 Answer
    • Sandip Reddy

      Is bond market regulated by SEBI like equity market?

      • 2 Answers

    Top Members

    kithfOGkE4Y

    kithfOGkE4Y

    • 0 Questions
    • 0 Answers
    zTjnTIEd4mDwbI

    zTjnTIEd4mDwbI

    • 0 Questions
    • 0 Answers
    fsJ4Tro5Qdki056hj

    fsJ4Tro5Qdki056hj

    • 0 Questions
    • 0 Answers

    Trending Tags

    2 year apcrda bonds best debt mutual funds best investment best investment for salaried individuals best investment options for salaried individuals bond market bonds bonds india bonds in india bonds interest rate bonds investment bonds market bonds ratings bonds risk bse budget budgeting build wealth buy bonds buy bonds india buy corporate bonds buy corporate bonds india buy corporate bonds in india buy government bonds buy government bonds online buy tax free bonds buy tax free bonds in india buy zero coupon bond in india buy zero coupon bonds india capital gain bonds central goverment bond corporate bond corporate bonds corporate bonds india corporate bonds online corporate bond work coupon rate creditworthiness debentures debt debt funds debt mutual funds decoding tax planning with the fixed income diversification diversify your investment equity market finance financial bonds financial returns fixed income securities fixed income security fixed maturities gdp goal of the young investor good investment good time to buy gov bonds government bonds government bonds india government bonds interest rate government bonds work government tax gsec higher returns highest return investment high returns high returns investment high yield income tax indian government bonds inflation interest rate invesment options invest invest 1.5 lakh investing in bonds investing in fixed income securities investing in rental properties investing in stocks invest in india invest in ncd ipo invest in zero coupon bonds investment investment for salaried individuals investment in bonds investment portfolio investment strategies invest money invest money in india investor investors ipo is sovereign gold bond taxable loan against investment loan for investment long term savings maturity maximize returns ncd ncd bonds ncd ipo ncds nominal non convertible debentures non convirtible bonds nri nri bonds nse online platform online platforms perpetual bonds personal finance portfolio ppf in early age primary bonds purchase bonds real estate investment repo rate retail investors retire retirement retirement plan returns risk free investment risks risk tolrence safe bonds safe investment safest bonds save money save tax savings saving tax saving tax bonds sebi secondary bond secondary bonds secondary market sell bonds senior citizen senior citizens short-term bond options short term short term investment sip sip in bonds source of income sovereign gold bond sovereign gold bond 5 years sovereign gold bond taxable after 5 years stable returns state goverment bond stock stock exchange stock market tax tax-saving for senior citizens tax benefits tax free bonds tax free bonds in india tax free investment tax saving tax saving investments tax savings tax saving schemes in india trade type of bonds types of bonds types of investment way to build wealth what are bonds what is corporate bond yield yield rate young investor zero coupon bond zero coupon bond issued by whom in india zero coupon bonds

    Explore

    • Home
    • Communities
    • Questions
      • New Questions
      • Trending Questions
      • Must read Questions
      • Hot Questions
    • Polls
    • Tags
    • Help

    Footer

    Bondsindia Forum

    #BondsSimplified

    BondsIndia is a part of Launchpad Fintech Pvt Ltd, an e-business platform for fixed income securities that uses technology as a means to provide financial solutions to users.

    About Us

    • Blog
    • Home
    • About Us
    • Contact Us

    Legal Stuff

    • Terms of Use
    • Privacy Policy
    • Cookie Policy
    • Disclaimer

    Help desk

    • Knowledge Panel
    • Customer Service
    • Weekly Report
    • Client Stories

    Follow Us

    All rights are reserved by Launchpad Fintech Private Limited having its brand name Bondsindia , its associates and group Companies.

    Insert/edit link

    Enter the destination URL

    Or link to existing content

      No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.