For medium- term and long- term investments, securities are an investment
alternative. A debt security is a bond that allows an investor to invest his or
her free funds for any period from 1 to 15 years. The security issuer accepts
the obligation to pay its holders an interest in the form of coupons (usually
once a year), and pay the face value at maturity.
The total yield from a bond to maturity consists of a coupon and the
difference between the sale price or the face value paid at maturity, and its
purchase price. The yield reflects the credit risk of the bond issuer (the
state, corporations, municipal bodies).
The minimum transaction is CZK 10 mil. or its equivalent in another