Bonds

A bond is a debt security issued by a government or its agency or corporate institution as a means of raising funds.  A bond is also a negotiable certificate evidencing indebtedness that the issuer owes the bondholders.

A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date.  The most common type of bond is municipal bonds and corporate bonds. The issuer usually pays the bondholder some periodic interest payments over the life of the bond.

Types of Bonds:

(1) Convertible Bonds.
(2) Deep Discount Bonds.
(3)  Bearer Bonds.
(4) Stepped Coupon Bonds.
(5) Commodity Bonds.
(6) Capital Indexed Bonds etc.