Knowing Bonds More Deeply

A bond is a transferable medium-term debt that contains a promise from the issuing party to pay the interest in the form of interest for a certain period and repay the principal of the debt at a predetermined time to the buyer of the bond. Bail bonds Las Vegas, NV is the best bail bonds in Las Vegas.

Type of Bond

Bonds have several different types, namely:

Viewed from the publisher side:

Corporate Bonds: bonds issued by companies, whether in the form of state-owned enterprises (SOEs), or private business entities.

Government Bonds: bonds issued by the central government.

Municipal Bonds: bonds issued by local governments to finance public utility projects.

Viewed from the interest payment system:

Zero Coupon Bonds: bonds that do not make periodic interest payments. However, interest and principal are payable at the same time at maturity.

Coupon Bonds: bonds with coupons that can be cashed periodically in accordance with the provisions of the issuer.

Fixed Coupon Bonds: bonds with pre-determined interest coupon rate in the primary market and will be paid periodically.

Floating Coupon Bonds: bonds with interest coupon rates determined before that time period, based on a specific benchmark such as average time deposit (ATD), which is the weighted average of deposit rates from state and private banks.

Judging from the redemption rights/options:

Convertible Bonds: a bond that entitles the bondholder to convert such bonds into a number of shares owned by the issuer.

Exchangeable Bonds: a bond that entitles the bondholder to exchange the company’s shares into a number of shares of the affiliated company of the issuer.

Callable Bonds: a bond that entitles issuers to repurchase a bond at a specified price over the life of the bond.

Puttable Bonds: a bond that entitles investors to require issuers to repurchase bonds at a specified price over the life of the bonds.

Viewed in terms of collateral or collaterals:

Secured Bonds: bonds secured by a particular asset from the issuer or with other guarantees from a third party. In this group, it includes:

Guaranteed Bonds: Interest-bearing and principal bonds are secured by third-party coverage.

Mortgage Bonds: interest-bearing bonds and principal are secured by mortgage collateral on a property or fixed assets.

Collateral Trust Bonds: bonds secured by securities owned by the issuer in its portfolio, such as shares of its subsidiary.

Unsecured Bonds: bonds that are not pledged with certain assets but are secured by the publisher’s wealth in general.

Viewed from nominal terms:

Conventional Bonds: commonly traded bonds in one nominal, Rp.1 billion per one lot.

Retail Bonds: bonds traded in small nominal values, both corporate bonds, and government bonds.