Issuers sometimes issue bonds that mature in installments over a specified period. These are called serial bonds and they represent one of the different types of bonds based on
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Repayment obligations to creditors and investors during times of liquidity due to bankruptcy follow a hierarchy. Senior debts, which include senior bonds, have a higher priority claim on the
Bonds that offer higher yields than investment-grade bonds at a higher default or credit risk are called high-yield bonds or junk bonds. These bonds represent one of the different
Bonds often have maturities. The maturity date represents the specific date when the principal amount of the bond becomes due and is repaid to the bondholder. It also marks
Bonds that can be converted into predetermined numbers of shares of common stock of companies other than their respective issuers are called exchangeable bonds. These bonds are similar to
Some bonds can be converted into a predetermined number of shares of common stocks of their issuing companies. These are called convertible bonds, and they represent one of the
Bonds that have a put option can be sold back to their issuers before their respective maturity dates. These bonds are called puttable bonds or put bonds, and they
There are bonds with an embedded call option that grants their issuers the right to call them back or redeem them at a premium price before their respective maturity
Investing in bonds can be a good option for moderate and conservative investors seeking to generate passive income streams for a fixed period or preserve their accumulated wealth or
Investing in bonds can be intimidating for beginners. There are too many terminologies that can be confusing. But knowing these terms and their specific definitions is essential before taking