Types of bonds
Bonds vary different kinds of considerations:
The first type: the division of bonds in terms of version:
The bonds are divided on this basis to government bonds and bonds eligibility.
1 - government bonds:
Are bonds issued by state and its institutions to the public and represent loans obtained by the government from individuals (or entities) either to finance the war effort and called "loans war" and either to finance economic development and called "production loans" or "development loans" Whereas government bonds jointly with bonds non-governmental organizations in the properties one but it differs in terms of benefits and the most important are:
1 - safer government bonds for the investor eligibility of bonds (or corporate bonds) in the sense that the investment will be less risky because it tends to be guaranteed the authority of the government and its institutions in the collection of government revenues, such as taxes.
2 - government bonds are more liquid than bonds eligibility.
3 - government bonds issued in most cases, coupled with the condition of the tax exemption for benefits from income tax.
Examples of government bonds: Treasury bonds Treasury Bonds and Treasury certificates Treasury Certificates and municipal bond Municipal Bonds. Examples of bonds issued by public institutions: Authority bonds.
A - Treasury bonds:
Treasury bonds or securities Treasury is a bond issued by the government and of between three months and one year and these papers do not bear interest but are sold at a discount given on the face value and give the government the benefit of cash are relatively low compared to the interest rate prevailing on bank loans due to the severity of liquidity such cases stemming could be deducted before the maturity date at the commercial banks.
B - Treasury certificates:
They promised to pay a certain sum of money in addition to the benefit of specific on a certain date not exceed the full year.
C - Municipal bonds:
It bonds issued by a government agency or issued by municipalities or local administrations and profits be exempt from income tax.
D - government bonds denominated in foreign currencies:
In some countries issued central bank bonds are called bonds of national development which are sold widely in the international markets and issued in U.S. dollars in several classes begin category $ 25 until class $ 10,000 and pay the central bank on these bonds benefit equal to interest received in the London market for loans between banks business plus the 5% or more or less they enjoy the rights and often wide exempted from all kinds of taxes and other types of restrictions, such as limitations conversion ... Etc.. The holder may replace investment certificates and put these bonds once a month.
E - Investment certificates:
In some banks issue debt securities countries shouted government called certificates of investment and these bonds sometimes divided into groups similar to U.S. Treasury bonds with some differences:
Group A: They support a ten-year and before the end of this period may not be the owner retrieved value At the end of the period gets the owner of this bond on the nominal value - any amount you paid for the certificate is added accumulation benefits for Altfq of them.
Group (b): a support religion gives its owner the benefits Althakqh certificate each year and some every six months by the terms of the issue and at the end of his term to recoup the nominal value.
Group C: and called certificates of awards, where it is the process of withdrawing periodically to win some of these certificates campaign prize money depending on the result of a "lottery" and the consequent benefits to the bondholder.
2 - civil bonds or bonds
The civil securities are issued by financial institutions or corporations operating in the private sector. The most important feature of the bonds eligibility for the investor is that they are issued at interest rates higher than the interest rates on government bonds and contrast of the main disadvantages that the bearer more vulnerable than bondholder government to credit risk Credit Risk and implications of the inability of the issuer to meet debt and interest annual. In order to provide some protection for the investor which issued these bonds are guaranteed often.
The Department of jurists bonds issued by companies into several types:
1 - normal bond or fixed-maturity bond issued at par:
It is a bond issued at a nominal value is the same as paid by the subscriber upon subscription and at the end of the loan term recovers the subscribed nominal value and gets fixed interest for this value happens to be the value of the bond market is greater than the nominal value has the opposite will happen.
2 - Sindh content:
He is like the former type, but this bond related to providing formal collateral mortgage on the property and movables personal or mortgage company such as ensuring that the government or a bank for the company and defines this type in England as the "regular bonds Bonds"
3 - Sindh due to meet at a premium:
It is a bond issued by the company or institution a certain amount called "issue price" and undertake to refund when consumption at a higher price plus addition called "premium" for example, company exports bond its original value 70 dinars and sufficient from the owner of the bond to pay 60 dinars only When consumption is nominal payment is 70 dinars a premium of ten dinars.
4 - a share authority:
It is a bond issued at a nominal value real any meet company or institution assigned value of the bond and set for his constant interest on maturity given and being drag uncle by lottery each year to take out the number of bonds and pay for their owners with value reward great possessions and are drawn to set a bond that consume without This bond interest type of lottery and recovers bearer nothing when the loss. Examples of these bonds in Egypt Land Bank bonds laws have prevented the issuance of this type only by special law or with the permission of the government.
5 - support the share without interest:
A bond that retrieves bearer capital in case of loss other than support share (with interest), it can be restored bearer something in case of loss, such as savings bonds in Sudan.
It should be noted that for many types of bonds and sight located almost every day a new type and new innovation in the securities and the like.
Type II: the division of bonds in the form of version
Division bonds (as in stock) in terms of form in which they are issued to two types: the bond holder and nominal bond.
A - bonds to bearer Bearer:
When issued devoid of name investor - as there is in this case record of ownership of the issuer - moves ownership Sindh accidentally receipt and be the bearer the right to interest when due and get once disarmament Coupon annex Sindh and submit it to the bank designated at the time of maturity of the bond will be the bearer also the right to receive the nominal value of the bank directly.
- Nominal or registered bonds Nominal or Registered:
And be Sindh nominally or registered when named the owner and no special register ownership bonds with the issuer and the bonds nominal or recorded can be fully registered and includes registration here both principal and interest can also be registered record partly limited register here on the origin of religion only the take as interest, as is the case in bonds to bearer form of coupons attached to the writ and remove him as soon as they fall due for collection from the bank directly.
The third type: the division in terms of term bonds:
Bonds are divided according to the length for it to:
It bonds that do not exceed one year and this type of bond financing instrument short-term Vidol in the money market and bonds enjoy a high degree of liquidity because of the low degree of risk associated with them so issued at interest rates relatively low Examples: Treasury bills of between 90 days and years Full and Treasury certificates that do not exceed the full year.
It bonds created over a year does not exceed 7 years and is considered medium-term financing tool and interest rates are higher than those on short-term bonds.
A bond that created more than 7 years and is considered long-term financing tool, so trading in the capital market and issued at higher interest rates than those on short-term bonds or medium-term Examples include mortgage bonds.
Type IV: the division of bonds in terms of security:
Issue bonds either secured or unsecured Valsndhat secured meaning guaranteed assets and income and are protected against new versions basic principle content and revenue content and return less than any other type does not need to care of the investor and the risk-free (almost) and if the bond is guaranteed mortgage possessory called Bond may be foreclosure all company property from property, plant and machinery and other This is called Mortgage Bond If exporting company failed to pay interest or the nominal value of the bond is the authority supervising version to sell their property until they are fulfilling that commitment.
The unsecured bonds it means that it is secured by certain assets and the need to care of the investor and the relative bear some of the risk and return is usually higher than the secured bonds. If the bond is secured by a possessory called the b Debenture and be warranty then is the reputation of the issuing company and its financial position and confidence of clients and it may deliberately companies to issue types of these bonds is not guaranteed anything and used in the work is shrouded in a great deal of risk, such as trying to acquire another company, and so on and called in U.S. junk bonds and the interest rate is very high, but the possibility to recover relatively small nominal value. Notes that some of these bonds كسندات income Income Bonds does not guarantee the holder to get the benefit of the bond on schedule only if the company won in that period profits enough to pay these benefits and if this does not happen فيؤجل pay these benefits to be achieved company profits sufficient to pay or pay Company revenue less payment or fall by college and declare bankruptcy in the case of inability to pay as such-like preferred shares.
Based on this Investing in these bonds is secured investor holds a high degree of risk to make it looks to achieve a return higher than achieved in secured bonds and this makes the relatively higher interest rates than the interest rates on unsecured bonds, but they are less stable.
Type V: in terms of susceptibility to call or to amortization:
Held version has the rights and obligations of both the source and the investor and the conditions that may be included in this contract is known as provided callback Call Provision and authorizes this condition of the issuer of the bond the right to call the bonds that are in this condition for extinguishing a specified price by a specified period and in this regard there are two types of bonds namely:
A - bonds are not callable Non Callable Bonds:
They bond with which the owner of the right to keep them until the end for it may not call the bond issuer to extinguish any reason These bonds are not callable unless otherwise stated frankly in a release.
B - callable bonds Callable Bonds:
When not to support a specified period or license shall be long with the issuing company want to give themselves the opportunity to repay the loan before the end of the period they require susceptibility to call these bonds are usually issued at a premium call to encourage investor to buy because the condition callback can be exploited by the issuer against the interests of the investor if the prices of bonds in the financial market or at a time interest rates are fixed by the higher than those prevailing in the market and these bonds callable differ in terms of the allowed period during which Balastdaa mismatch bonds be absolute Freely Callable which is the issuer's absolute freedom to call the bond at any time after issuance and the bondholder commit Sindh to extinguish the deadline set by the company and only he has no interest thing this type rare Unlike bonds Call deferred and which gives its holder for the protection of the summons ranging from 5 - 10 years from the date of issuance and may thus not the issuing company to these bonds called before the lapse of this period.
It should be noted that the callable bonds generally are issued at higher interest rates for bonds of non-call.
Bonds vary different kinds of considerations:
The first type: the division of bonds in terms of version:
The bonds are divided on this basis to government bonds and bonds eligibility.
1 - government bonds:
Are bonds issued by state and its institutions to the public and represent loans obtained by the government from individuals (or entities) either to finance the war effort and called "loans war" and either to finance economic development and called "production loans" or "development loans" Whereas government bonds jointly with bonds non-governmental organizations in the properties one but it differs in terms of benefits and the most important are:
1 - safer government bonds for the investor eligibility of bonds (or corporate bonds) in the sense that the investment will be less risky because it tends to be guaranteed the authority of the government and its institutions in the collection of government revenues, such as taxes.
2 - government bonds are more liquid than bonds eligibility.
3 - government bonds issued in most cases, coupled with the condition of the tax exemption for benefits from income tax.
Examples of government bonds: Treasury bonds Treasury Bonds and Treasury certificates Treasury Certificates and municipal bond Municipal Bonds. Examples of bonds issued by public institutions: Authority bonds.
A - Treasury bonds:
Treasury bonds or securities Treasury is a bond issued by the government and of between three months and one year and these papers do not bear interest but are sold at a discount given on the face value and give the government the benefit of cash are relatively low compared to the interest rate prevailing on bank loans due to the severity of liquidity such cases stemming could be deducted before the maturity date at the commercial banks.
B - Treasury certificates:
They promised to pay a certain sum of money in addition to the benefit of specific on a certain date not exceed the full year.
C - Municipal bonds:
It bonds issued by a government agency or issued by municipalities or local administrations and profits be exempt from income tax.
D - government bonds denominated in foreign currencies:
In some countries issued central bank bonds are called bonds of national development which are sold widely in the international markets and issued in U.S. dollars in several classes begin category $ 25 until class $ 10,000 and pay the central bank on these bonds benefit equal to interest received in the London market for loans between banks business plus the 5% or more or less they enjoy the rights and often wide exempted from all kinds of taxes and other types of restrictions, such as limitations conversion ... Etc.. The holder may replace investment certificates and put these bonds once a month.
E - Investment certificates:
In some banks issue debt securities countries shouted government called certificates of investment and these bonds sometimes divided into groups similar to U.S. Treasury bonds with some differences:
Group A: They support a ten-year and before the end of this period may not be the owner retrieved value At the end of the period gets the owner of this bond on the nominal value - any amount you paid for the certificate is added accumulation benefits for Altfq of them.
Group (b): a support religion gives its owner the benefits Althakqh certificate each year and some every six months by the terms of the issue and at the end of his term to recoup the nominal value.
Group C: and called certificates of awards, where it is the process of withdrawing periodically to win some of these certificates campaign prize money depending on the result of a "lottery" and the consequent benefits to the bondholder.
2 - civil bonds or bonds
The civil securities are issued by financial institutions or corporations operating in the private sector. The most important feature of the bonds eligibility for the investor is that they are issued at interest rates higher than the interest rates on government bonds and contrast of the main disadvantages that the bearer more vulnerable than bondholder government to credit risk Credit Risk and implications of the inability of the issuer to meet debt and interest annual. In order to provide some protection for the investor which issued these bonds are guaranteed often.
The Department of jurists bonds issued by companies into several types:
1 - normal bond or fixed-maturity bond issued at par:
It is a bond issued at a nominal value is the same as paid by the subscriber upon subscription and at the end of the loan term recovers the subscribed nominal value and gets fixed interest for this value happens to be the value of the bond market is greater than the nominal value has the opposite will happen.
2 - Sindh content:
He is like the former type, but this bond related to providing formal collateral mortgage on the property and movables personal or mortgage company such as ensuring that the government or a bank for the company and defines this type in England as the "regular bonds Bonds"
3 - Sindh due to meet at a premium:
It is a bond issued by the company or institution a certain amount called "issue price" and undertake to refund when consumption at a higher price plus addition called "premium" for example, company exports bond its original value 70 dinars and sufficient from the owner of the bond to pay 60 dinars only When consumption is nominal payment is 70 dinars a premium of ten dinars.
4 - a share authority:
It is a bond issued at a nominal value real any meet company or institution assigned value of the bond and set for his constant interest on maturity given and being drag uncle by lottery each year to take out the number of bonds and pay for their owners with value reward great possessions and are drawn to set a bond that consume without This bond interest type of lottery and recovers bearer nothing when the loss. Examples of these bonds in Egypt Land Bank bonds laws have prevented the issuance of this type only by special law or with the permission of the government.
5 - support the share without interest:
A bond that retrieves bearer capital in case of loss other than support share (with interest), it can be restored bearer something in case of loss, such as savings bonds in Sudan.
It should be noted that for many types of bonds and sight located almost every day a new type and new innovation in the securities and the like.
Type II: the division of bonds in the form of version
Division bonds (as in stock) in terms of form in which they are issued to two types: the bond holder and nominal bond.
A - bonds to bearer Bearer:
When issued devoid of name investor - as there is in this case record of ownership of the issuer - moves ownership Sindh accidentally receipt and be the bearer the right to interest when due and get once disarmament Coupon annex Sindh and submit it to the bank designated at the time of maturity of the bond will be the bearer also the right to receive the nominal value of the bank directly.
- Nominal or registered bonds Nominal or Registered:
And be Sindh nominally or registered when named the owner and no special register ownership bonds with the issuer and the bonds nominal or recorded can be fully registered and includes registration here both principal and interest can also be registered record partly limited register here on the origin of religion only the take as interest, as is the case in bonds to bearer form of coupons attached to the writ and remove him as soon as they fall due for collection from the bank directly.
The third type: the division in terms of term bonds:
Bonds are divided according to the length for it to:
It bonds that do not exceed one year and this type of bond financing instrument short-term Vidol in the money market and bonds enjoy a high degree of liquidity because of the low degree of risk associated with them so issued at interest rates relatively low Examples: Treasury bills of between 90 days and years Full and Treasury certificates that do not exceed the full year.
It bonds created over a year does not exceed 7 years and is considered medium-term financing tool and interest rates are higher than those on short-term bonds.
A bond that created more than 7 years and is considered long-term financing tool, so trading in the capital market and issued at higher interest rates than those on short-term bonds or medium-term Examples include mortgage bonds.
Type IV: the division of bonds in terms of security:
Issue bonds either secured or unsecured Valsndhat secured meaning guaranteed assets and income and are protected against new versions basic principle content and revenue content and return less than any other type does not need to care of the investor and the risk-free (almost) and if the bond is guaranteed mortgage possessory called Bond may be foreclosure all company property from property, plant and machinery and other This is called Mortgage Bond If exporting company failed to pay interest or the nominal value of the bond is the authority supervising version to sell their property until they are fulfilling that commitment.
The unsecured bonds it means that it is secured by certain assets and the need to care of the investor and the relative bear some of the risk and return is usually higher than the secured bonds. If the bond is secured by a possessory called the b Debenture and be warranty then is the reputation of the issuing company and its financial position and confidence of clients and it may deliberately companies to issue types of these bonds is not guaranteed anything and used in the work is shrouded in a great deal of risk, such as trying to acquire another company, and so on and called in U.S. junk bonds and the interest rate is very high, but the possibility to recover relatively small nominal value. Notes that some of these bonds كسندات income Income Bonds does not guarantee the holder to get the benefit of the bond on schedule only if the company won in that period profits enough to pay these benefits and if this does not happen فيؤجل pay these benefits to be achieved company profits sufficient to pay or pay Company revenue less payment or fall by college and declare bankruptcy in the case of inability to pay as such-like preferred shares.
Based on this Investing in these bonds is secured investor holds a high degree of risk to make it looks to achieve a return higher than achieved in secured bonds and this makes the relatively higher interest rates than the interest rates on unsecured bonds, but they are less stable.
Type V: in terms of susceptibility to call or to amortization:
Held version has the rights and obligations of both the source and the investor and the conditions that may be included in this contract is known as provided callback Call Provision and authorizes this condition of the issuer of the bond the right to call the bonds that are in this condition for extinguishing a specified price by a specified period and in this regard there are two types of bonds namely:
A - bonds are not callable Non Callable Bonds:
They bond with which the owner of the right to keep them until the end for it may not call the bond issuer to extinguish any reason These bonds are not callable unless otherwise stated frankly in a release.
B - callable bonds Callable Bonds:
When not to support a specified period or license shall be long with the issuing company want to give themselves the opportunity to repay the loan before the end of the period they require susceptibility to call these bonds are usually issued at a premium call to encourage investor to buy because the condition callback can be exploited by the issuer against the interests of the investor if the prices of bonds in the financial market or at a time interest rates are fixed by the higher than those prevailing in the market and these bonds callable differ in terms of the allowed period during which Balastdaa mismatch bonds be absolute Freely Callable which is the issuer's absolute freedom to call the bond at any time after issuance and the bondholder commit Sindh to extinguish the deadline set by the company and only he has no interest thing this type rare Unlike bonds Call deferred and which gives its holder for the protection of the summons ranging from 5 - 10 years from the date of issuance and may thus not the issuing company to these bonds called before the lapse of this period.
It should be noted that the callable bonds generally are issued at higher interest rates for bonds of non-call.
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