Types of Binds
Mortgage bond
Debentures
Subordinates Debentures
Investment-grade bond
Junk bonds
Other Types (Features) of Bonds
- convertible bond - may be exchanged for common stock of the firm, at the holder's option.
- warrant - long term option to buy a stated number of shares of common stock at a specified price.
-Putable bond -allows holder to sell the bond back to the company prior to maturity.
-Callable bond - allows issuer to refund the bond issue if rates decline
-Income bond - pays interest only when interest is earned by the firm.
- Indexed bond - interest rest paid is based upon the rate of inflation.