6.8 Lessons 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.