Stock Trading.

  

Bond Investing.

What is the BOND?

A Bond is evidence of loan, which represent a debt owed by corporation or government to the person who purchased the bond. The bond document indicates the amount, interest rate, maturity date and the name of organization that issued the bond. A bond may sell at premium or at a discount to par.

Types of BONDS

There are a wide variety of bonds. They are differ as to right to the bondholders, the term for payment of interest and principal and the nature of security supporting the bond.

• Registered Bond.
  It has owner's name recorded on the bond and on the corporation's books.
• Bearer bond.
  It is a non-registered bond. The bearer may purchase them and bearer may collect the interest. They are usually coupon bonds.
• Coupon Bonds.
  A coupon bond has interest coupons attached that may be clipped and represented for payments any time after the specified date.
• Stripped bond.
  A coupon bond that had its coupons removed (sold separately). The bond does not pay any interest but its face value at maturity.
• Convertible bond.
  It is one that may be converted by its owner into common shares of the corporation at a specific price and under specified conditions.
• Callable bond.
  It is the bond that may be redeemed by the issuer before the normal maturity date under certain specific conditions.
• First Mortgage Bond.
  It is the one that has first claim before all other creditors.
• Secured Bond.
  It is the bond that is secured by asset of issuing corporation.

Among the types of bonds you can choose from are: government securities, municipal bonds, corporate bonds, mortgage and asset-backed securities, federal agency securities and foreign government bonds.

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