Finance, Chapter 10ABBearer bondA bond that is not registered in the investor's name.Zero-coupon bondA bond that provides no interest payments and is redeemed for its face value at maturity.Municipal bondA security issued by a state or local government to pay for its ongoing activities.27 more rows
When companies want to raise capital, they can issue stocks or bonds. Bond financing is often less expensive than equity and does not entail giving up any control of the company. A company can obtain debt financing from a bank in the form of a loan, or else issue bonds to investors.
There are five main types of bonds: Treasury, savings, agency, municipal, and corporate. Each type of bond has its own sellers, purposes, buyers, and levels of risk vs. return. If you want to take advantage of bonds, you can also buy securities that are based on bonds, such as bond mutual funds.
Types of Corporate Bonds. There are five basic categories of corporate bonds: public utilities, transportations, industrials, banks and finance companies, and international issues. The five categories can be further broken down.