Variations on Bonds

Convertible Bonds

Convertible bonds are sometimes called hybrid investments because they offer the opportunity to convert a corporate bond into shares of the company's common stock.

Callable Bonds

If you purchase a callable bond, the issuer has the right to redeem the bond ahead of its maturity date.

Bonds with Conditions

Some bonds have special conditions that delineate which investors are paid first, whether rate adjustments can be made and whether the bond is pre-refunded or insured to reduce risk.