The bond is typically a un secured debenture , however, sometime bond and debenture are used in same meaning. The following the main types of bonds available in the market.
- Simple Bond
- Deep Discount Bonds
- Zero Coupon Bonds
Deep Discount Bond :- A bond which is issued at discount and will be redeemed at nominal value. This bond also carry a fixed rate of return, however, this rate is far below than market rate of ordinary bond.
Zero Coupon Bond :- The bond is another type of deep discount bond but this type does not carry any fixed rate of return.
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