Question

Which are common types of bonds that are currently issued

Answer 1

The types of bonds that are currently issued are:

• corporate bonds
• municipal bonds
• Treasury bills
• Treasury notes

What are bonds?

This is the term that is used to refer to the debt instruments that governments and big organizations make use of. They are used to obtain loans since they are representatives of the money that was borrowed.

What are the uses of bonds?

The people and the institutions that hold bonds may be able to use it for long term planning. The way this is done is that it would help them in the preservation, saving as well as when they want to diversify their portfolios.  They can offer higher interest rates to those that invested on them. More than deposits would.

It helps to create a system of income stream for the people holding given that they were able to hold it to its term of maturity.

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