What are the different types of bonds?

What are the different types of bonds?

There are several types of bonds, including government bonds, corporate bonds, municipal bonds, and zero-coupon bonds.

Can you explain government bonds?

Government bonds are debt securities issued by a government to support spending and are considered low-risk investments.

What about corporate bonds?

Corporate bonds are issued by companies to raise capital, and they typically offer higher yields than government bonds but come with higher risk.

What is a zero-coupon bond?

A zero-coupon bond is a bond that does not pay interest during its life. Instead, it is sold at a discount and matures at face value.

Which type of bond is the safest?

Generally, government bonds are considered the safest type of bond, especially those issued by stable governments.