A Bullet Bond is a financial investment in which the full principal amount is paid in one big payment at maturity rather than being a mortised throughout the life of the bond. Bullet bonds are non-callable since their issuer cannot redeem them early. They are typically issued by corporations as a way to finance short-term needs such as acquisitions or working capital.Bullet bonds can be attractive to investors because of their high yield and low risk profile. Since they have no call feature, there is little chance that the investor will lose money if interest rates rise after purchase. In addition, since bullet bonds mature quickly, there is less opportunity for interest rates to move against you over time.While bullet bonds may be appropriate for some investors, they should not be considered without careful consideration of your own unique situation and needs.
