Basic Types of Bonds

Fixed-rate bonds refer to bonds whose coupon rate is specified at the time of issuance and will not change during the repayment period. [1] Also known as "ordinary bonds", symmetry of "floating rate bonds", a traditional form of bonds in which the interest rate is fixed when issued. Such bonds usually have a fixed interest coupon and maturity date printed on the face, with the issuer paying interest every six months or annually. The coupon holder cuts the coupon and receives the interest from the issuer or its designated bank. This type of bond is more popular when market interest rates do not change much, but when market interest rates are unstable or even change sharply, their issuance is greatly restricted. [

A fixed-rate bond is a bond with a fixed interest rate, a fixed interest coupon and a fixed maturity date; bond agencies usually pay interest to coupon holders in accordance with regulations and pay bond holders on the maturity date. Someone pays the principal. Fixed-rate bonds are the traditional type of international bonds and are currently the most common form of international bond financing.

Fixed interest bonds are usually issued under relatively stable market interest rates. When market interest rates continue to change significantly, it will cause risks to bond issuers or bond investors, affecting the issuance conditions and conditions of bonds. Release effect.

After the 1980s, some variants of fixed-rate bonds began to appear in the European bond market, the most typical of which is Retractable Bond, which divides the bond period into several periods and only fixes the interest rate in the first period when it is issued. , and the interest rate will be determined separately for each subsequent period to overcome the shortcomings of fixed-interest bonds