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. Would you like to know more about a specific type?

Can you explain government bonds?

Government bonds are debt securities issued by a government to support spending and are considered low-risk investments. They typically pay interest over a fixed term.

What about corporate bonds?

Corporate bonds are issued by companies to raise capital. They usually offer higher yields than government bonds but come with higher risk.

What are municipal bonds?

Municipal bonds are issued by local or state governments and often provide tax-free interest income. They're used to fund public projects.

What is a zero-coupon bond?

A zero-coupon bond does not pay periodic interest. Instead, it is sold at a discount and matures at its face value, providing a return at maturity.