Usually following types of bonds are seen in today’s financial market - ইউসুফ ছোটন

�   coupon bonds– these are bonds that promises a fixed face value at the maturity and periodic interest payments

�   zero coupon bonds– these are bonds that do not provide any sort of interest payments, rather only provide the face value at maturity. As a result, these bonds are issued at a deep discount from par value. Since these bonds do not require any cash payment before maturity, corporations sometimes find it advantageous over other types of bonds

�   convertible bonds– these bonds allow investors to exchange bonds for shares of the issuer company. As shares show a potentiality of high return, investors are often wiling to accept a lower rate on them, which helps corporations to obtain funds at a lower cost

�   junk bonds– these are bonds that promise a high return but also has a high degree of default risk. Usually these funds are issued by firms that have a high degree of leverage in their capital structure and faces bankruptcy risk.