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floating rate securities can be broadly divided into following two partsfloating-rate securities that have constant quoted
these were first issued during a period of extreme interest rate volatility in the late 1970s floating-rate bonds which are also known
these are bonds which are offered within the euro market and several other markets simultaneously unlike eurobonds global bonds can be
the term eurobonds refers to bonds issued and sold outside the home country of the currency for example a dollar denominated bond issued
they are issued in the local market by a foreign borrower are usually denominated in the local currency for example yankee
they are issued in the local market by a domestic borrower and are usually denominated in the local currency for example us companies
various other types of bonds are-1 domestic bonds2 foreign bonds3 euro bonds 4 global bonds5 floating
in the case of dual currency bonds the interest is paid in one currency while the principal repayment is made in
deferred coupon bonds are generally issued at a discount price and are used for financing leveraged buyouts the coupon
these types of securities have more than one coupon rate and each subsequent coupon rate is higher or lower than the previous
all the bonds are not making periodic coupon paymentszero-coupon bonds are those bonds where the bondholder realizes interest by buying it at a
putable bonds can be redeemed prior to maturity at the initiative of the bondholder these bonds are more advantageous to the investors as they
the issuer offers bonds with an option to the investor to convert these bonds into equity shares at a pre-fixed ratio these can be fully
callable bonds give the right to the issuer to redeem the bond prior to its maturity date at a specified call price these
debentures are also fixed income securities with a specified interest rate these securities have charge over the assets of
international bonds are divided into two categories namely foreign bonds and euro bonds foreign bonds are issued by a
in indexed bonds the principal and coupon payments are linked to the market index like inflation and price index index bonds
bonds issued by the government are termed as treasury bonds for example dated securities issued by the government these bonds are
as liberalization is gathering momentum corporate treasures and merchant bankers are in the process of devising new products to suit the
bonds can also be classified into convertible and non-convertible depending upon whether they carry a conversion feature or not
on the basis of transferability debentures can be classified as registered and unregistered debentures unregistered debentures or bearer
this is again a distinction which becomes important in case of a default the senior bondholders have to be paid before the subordinate
along the dimension of security bonds can be classified into unsecured straight bonds and secured mortgage bonds unsecured bonds have no
types of bonds1 secured versus unsecured bonds2 senior versus subordinate bonds3 registered and