Types of Corporate Bonds
What are the various types of Corporate Bonds?
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Types of Corporate Bonds:
• Corporate bonds are long-term IOUs which symbolize claims against a firm’s assets.
• Debt instruments, where the interest income paid to investors is set for the life of the contract, are termed as fixed-income securities.
• Three kind of corporate bonds—vanilla bonds, zero coupon bonds, and convertible bonds.
Flow variables: Any variable, whose magnitude is evaluated over a time period, is termed as glow variable.
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