Bonds Types
Continuing last articles about bonds, today I’d like to discuss it in more easy to understand view. Lets start it with definitions. Bond is a medium-term debt securities which are transferable long that contains a promise from the issuing party to pay compensation in the form of interest in a certain period and pay off the principal debt at a specified time to the purchaser of the bonds.
Bonds has several different types, namely as below:
1) Judging from the publishers:
a) Corporate Bonds: Bonds issued by companies, either in the form of state-owned enterprises (SOEs), or private entities.
b) Government Bonds: Bonds issued by the central government.
c) Municipal Bond: Bond issued by local governments to finance projects related to public interest (public utility).
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