23.8 Lessons learnt
What have we learnt?
- We can distinguish regular bonds with a fixed interest rate, duration, and maturity.
- With subordinated bonds, if a company goes bankrupt, you are the last to receive your investment back.
- With zero coupon bonds, you don’t pay out a fixed coupon, but you benefit from redemption profit.
- Convertible and reversed convertible bonds allow you to benefit from the underlying performance of the underlying stock.