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| Types of bonds . Government bonds are usually risk-free but offer low yields or rate of interest. Corporate bonds promise different yields depending on the company itself and its financial situation. Usually, healthy corporations offer low yields because of the certainty of the coupon payment. Junk bonds are high yield investments; they have the lowest credit ratings and are the riskiest. The zero coupon bond makes no coupon payment but presents a relatively low issue price so that it can worth much more at maturity. Next section: Derivatives Go back |
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