| A | B |
|---|
| junk bond | bond with very low rating, or no rating |
| convertible bond | corporate bond that bondholder can choose to exchange for shares of common stock |
| callable bond | bond that issuer has right to pay off before maturity date |
| agency bond | debt security issued by federal agencies |
| zero-coupon bond | bond sold at deep discount and makes no interest payments |
| debenture | corporate bond not backed by collateral but only by credit standing |
| mortgage bond | corporate bond backed by specific assets as collateral |
| general obligation bond | municipal bond backed by power to levy taxes to pay off loan |
| investment-grade bond | high-quality bond considered to be safe investment |
| municipal bond | bond issued by state or local government |
| face value | amount bondholder will receive when bond is repaid at maturity |
| revenue bond | municipal bond issued to raise money for public-works project |
