By knowing types of bonds, it’d be easier for the new investors to make the right decisions whenever they’re trying this mid-term type of investment. Aside from that, it can also be a good idea to hire the professionals from bail bonds ft Lauderdale to help them out.
From the issuer side:
Corporate bond, ie bonds issued by the company;
Government bonds, namely bonds issued by the Central Government;
A municipal bond, which is a bond issued by the local government.
Payment system :
a. Zero coupon bond, a bond that does not require the issuer to pay the coupon (interest) to the holder.
b. Coupon bond (fixed coupon bond & floating coupon bond), which is a bond obliging issuer to pay coupon (interest) both fixed (fixed coupon bond) and floating coupon (floating coupon bond)
From the right of redemption:
Convertible bond, which is a bond that can be exchanged for the issuer’s shares (exchanged shares of the issuer)
Exchangeable bonds, which are bonds that can be exchanged with affiliated shares owned by the issuer/emiten
Callable bond, a bond that gives the issuer the right to make a withdrawal/repayment at a certain time (withdrawal time is usually set in the bond issue issuance time)
Putable bond, which is a bond that gives the owner/holder the right to redeem/request the repayment to the issuer/emiten.
From the Warranty side:
Secure bond, ie bonds guaranteed repayment with certain assets.
Guaranteed bond, if the guarantor is a party III
Mortgage bond, if secured by real properties (: building)
Collateral trust bond, if secured by securities (receivables) receivables Unsecured bonds (Debentures), ie bonds that are not guaranteed by certain assets.
Bond prices are a price if we want to buy or sell bonds in the capital market either through exchange transactions or OTC.
Some things that affect the price of bonds are:
Nominal, the bond price as at the time of issue.
The interest rate, which is the prevailing interest rate in society as a counter coupon (interest) on bonds.
The interest payment period, ie the period of time in which the issuer makes the coupon payment. Usually 3 monthly or 6 monthly.
The maturity period is the period since the bond is issued until it is paid by the issuer.