Bonds are essential financial instruments used by governments, corporations, and other entities to raise capital. This abstract explores the classification of bonds based on various criteria, including issuer type, maturity, coupon payment, and security features. It highlights the significance of bond classification in understanding the risk and return characteristics associated with different types of bonds. Additionally, it discusses common categories of bonds, such as government bonds, corporate bonds, municipal bonds, zero-coupon bonds, and convertible bonds. The classification of bonds provides valuable insights into their unique characteristics and helps investors assess their suitability based on their investment objectives and risk tolerance. One common criterion for classifying bonds is the type of issuer. Government bonds are issued by national governments and are considered low-risk investments. Corporate bonds are issued by corporations to raise capital and offer varying levels of risk and return based on the creditworthiness of the issuing company. Municipal bonds are issued by local governments or municipalities to finance public projects and may offer tax advantages to investors.
Convertible Bonds, Corporate Bonds, Credit Rating, Government Bonds, High-Yield Bonds, Municipal Bonds, Perpetual Bonds
[Dr. Srinivasan Palamalai (2022) An Analysis of Financial Bonds Classification] (ISSN 2347 - 5552). www.ijircst.org
Dr. Srinivasan Palamalai
Associate Professor, Master in Business Administration (General Management), Presidency University, Bangalore, India,
Email Id:- srinivasanp@presidencyuniversity.in
