Question

We discussed four main types of bonds. Please list them in order from least risky to most risky, and please name/describe any interesting features some of them may contain) e.g. - tax ramifications, unique features to attract investors, etc. (please be thorough in your response, as we spent a great deal of time on this subject)

Answer 1

Question: types of bonds.
Bonds are issued by organizations generally for a period of more than one year to raise money by borrowing.Organizations in order to raise capital issue bond to investors which is nothing but a financial contract, where the organization promises to pay the principal amount and interest.

Question: what are Four main types of bonds are:
Fixed Rate Bonds:: the interest remains fixed through out the tenure of the bond.
Perpetual Bonds ::Bonds with no maturity dates are called perpetual bonds. Holders of perpetual bonds enjoy interest throughout.
Serial Bonds -Bonds which are maturing over a period of time for sure,in installments etc are called serial bonds.
War Bonds:are issued by any government to raise funds in cases of war.