The fundamental differences between the various types of bonds that exist or are issued in the market. There are two types of bonds that dominate the market: “Government bonds“ and “Corporate bonds”. Although they appear to be identical, they actually have significant differences.
2. Government Bonds
1
.
Government bonds are issued by the central/ union
or state governments to fund various government
projects.
2
.
The government pays interest on the face value of
the bond annually.
3.Government bonds are considered as one of the
safest
investment options because they carry sovereign
guarantees.
4. Government bonds give less yield returns than
corporate
bonds because the risk in these instruments is
lower.
5. Government bonds are generally issued for terms
ranging from 5 to 30 years. Since it is a long
tenure, it loses its relevance.
1
.
Government bonds are issued by the central/ union
or state governments to fund various government
projects.
2
.
The government pays interest on the face value of
the bond annually.
3.Government bonds are considered as one of the
safest
investment options because they carry sovereign
guarantees.
4. Government bonds give less yield returns than
corporate
bonds because the risk in these instruments is
lower.
5. Government bonds are generally issued for terms
ranging from 5 to 30 years. Since it is a long
tenure, it loses its relevance.
Corporate Bonds
3. THANK YOU
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corporate-and-governments-bonds/
