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What are the types of Bonds.


Bond=

Bond is that type of Certificate which is issued on the basis of interest usually issued by Government or any corporation for the purpose of raising money. The owner of the bond receives fixed amount announced with the bond details for the given period of time.

Types of Bonds=


There are many types of Bonds given below:


Mortgage Bonds:


Mortgage Bonds are issued by the corporation based on real estate holdings business. In case of any default or unpaid amount to the bond holders, the bondholders are eligible to sell the property of the corporation to cover his investments.


Redeemable Bonds:


This type of bond can be redeemed by the corporation or by the government which means the bond which can be redeemable by the issuer at the time of maturity of the bond.


Adjustable Bonds:


Adjustable bonds are that type of bond which is issued by corporation at the time of construct or form a new structure which is also known as restructuring period of corporation.

Junk Bonds:


These Bonds are famous as a higher return and higher risk bond, as other bond issued it is also issued by corporation in order to raise finance for covering financial needs or to collect finance for many other tasks of the company.


Convertible Bonds:


The bonds which can be converted at the certain time during the life of the bond by the bondholder is known as convertible bond. The bondholder has a choice to convert such type of bond whenever he wants during the life of convertible bond.

Debenture Bonds:


This type of bond is issued by the corporation as well as the government more often for the purpose of securing their capital.

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