The various types of Bonds are 1 Zero Coupon Bond Bond issued at a discount and repaid at a face val...........

Finance (Phase -I & II) Valuation of Securities

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The various types of Bonds are-

1. Zero Coupon Bond: Bond issued at a discount and repaid at a face value.

2. Convertible Bond: A bond giving the investor the option to convert the bond into equity at a fixed conversion price.

only 1

only 2

Both 1 and 2

Neither 1 nor 2

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Explanation:

The various types of Bonds are as follows:
1. Zero CouponBond: Bond issued at a discount and repaid at a face value. No periodic interest is paid. The difference between the issue price and redemption price represents the return to the holder. The buyer of these bonds receives only one payment, at the maturity of thebond.
2. ConvertibleBond: A bond giving the investor the option to convert the bond into equity at a fixed conversion price.