Meaning:

• Bonds are a debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing. 
• Bonds are issued by companies, municipalities, states and sovereign governments to finance projects and operations. 
• Owners of bonds are debtholder or creditor of the company.
• Bonds are units of corporate debt issue by companies and securitized as tradeable assets.
• Bonds prices are inversely correlated with interest rates. when rates go up, bond prices fall and vice-versa.
• Bonds have maturity dates at which point the principal amount must be paid back in full or risk default.

there are more than 12 types of bonds are traded but i will explain two types which are mentioned below.

INFLATION INDEXED BOND AND ZERO COUPON BOND:

INFLATION INDEXED BOND:

                  Inflation indexed bonds are bonds where the principal or interest is indexed to inflation and retail price index. They are thus, designed to cut out the inflation risk of an investment and inflation indexed bond is  security that guarantees a return higher then the rate of inflation if it is held to maturity. Inflation index security link their capital appreciation or coupon payment, to inflation rate.

ZERO COUPON BOND:

           

              A zero coupon bond is a bond which is bought at a lower price (issued at discount), with the face value repaid at the time of maturity ( redeem at par). It means issued at discount and redeem at par. It does not make periodic interest payments, or have so called "coupons", hence the terms zero-coupon bond. When the bond reaches maturity, its investor receives its par ( or face) value. The difference between the purchase and redemption is the coupon amount.    

    

Hope you like my information on bonds and if you have any doubts or any suggestion please comment below.

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