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What are the different types of bonds

What is a bond ? Buying a bond is like lending money to the issuer. The issuer promises to pay the lender a specified rate of interest till the bond matures. Also, you get your principal amount back it matures. The bond issuer might be a government, municipality, or corporation.  

  Types of bonds  Corporate bonds : They are debt securities issued by either the public or private companies. They can be categorized in Investment grade and High-yield grade bonds based on their credit ratings.  


    Municipal bonds : They are debt securities issued by states, cities, counties and other government entities a.k.a. "Munis". They can be categorized in General Obligation bonds, Revenue bonds and Conduit bonds.


    U.S. Treasuries bonds : They are issued by the U.S. Department of the Treasury on behalf of the federal government. They have the faith and credit of the U.S. government. Check out the types of U.S. Treasury debt .  


  Security  One should do their own due diligence before investing in any bonds. There are some tools which can help you with it. Corporate Bonds : The SEC tool  EDGAR can help you determine if the corporate bonds are registered with SEC or not. Municipal Bonds : Similar for the municipal bonds SEC registration can be verified on EMMA.