Types of bonds
There are various types of bonds:
1. Fixed rate bonds – these bonds have a coupon that is fixed forever
2. Floating rate bonds – these bonds have a coupon that is connected with an index (so the coupon’s value changes)
3. Zero coupon bonds – these do not pay any interest at all
4. Inflation linked bonds – just like the name says, they are connected with the inflation and their value changes
5. Perpetual bonds (also called perpeteuties) – these do not have a maturity date
6. Bearer bond - this type of bond is issued without a name to it (the one who has the paper is the owner)
7. Municipal bond – issued by a state, government or an agency
8. War bond – issued by a country to pay for a war