Section 6
Types of Bonds
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
4 concepts
Government Bonds
A government bond is a bond issued by a national government denominated in the country's domestic currency.
Zero-Coupon Bonds
A zero-coupon bond is a bond with no coupon payments, bought at a price lower than its face value, with the face value repaid at the time of maturity.
Floating-Rate Bonds
Floating rate bonds are bonds that have a variable coupon equal to a money market reference rate (e.g., LIBOR), plus a quoted spread.
Other Types of Bonds
Other bonds include register vs. bearer bonds, convertible bonds, exchangeable bonds, asset-backed securities, and foreign currency bonds.