Definition
Bonds are debt securities issued by the government or corporations that can be held until maturity or traded in the secondary market. The benefit of owning bonds is the return in the form of regular coupon payments.

Bond Issuers
1. Government
Consists of conventional bonds such as ORI and SPN, as well as sharia bonds such as government sukuk and retail sukuk.
2. Corporations
Issued by both state-owned enterprises and private companies.
3. Local Government
Government bonds generally grow in countries with mature financial systems, such as the US, Japan, and most European countries such as the UK and Germany.

Interest Payment System
1.Zero coupon bonds
Bonds that do not make periodic interest payments, but interest and principal will be paid at maturity.
2. Coupon bonds
Bonds with coupons that can be cashed periodically according to the issuer's provisions.
3. Fixed coupon bonds
Bonds with a fixed coupon rate that has been set before the initial public offering and will be paid periodically.
4. Floating coupon bonds
Bonds with a coupon rate determined before the term, based on a certain reference (benchmark) such as the average time deposit (ATD), which is the weighted average interest rate on deposits from government and private banks.

Categories Based on Conversion Rights or Options
1. Convertible bonds
Bonds that give bondholders the right to convert the bonds into a certain number of shares owned by the issuer.
2. Exchangeable bonds
Bonds that give bondholders the right to exchange company shares for a certain number of shares in the issuer's affiliate company.
3. Callable bond
Bonds that give the issuer the right to repurchase bonds at a certain price throughout the life of the bond.
4. Putable bonds
Bonds that give investors the right to require the issuer to repurchase bonds at a certain price throughout the life of the bond.

Categories Based on Security Aspect
1. Secured Bonds
Bonds secured by certain wealth of the issuer or other guarantees from third parties. Consists of:

• Guaranteed Bonds:
  Bonds whose interest and principal payments are guaranteed by third-party guarantees.
• Mortgage Bonds
  Bonds whose interest and principal payments are guaranteed by mortgages on property or fixed assets.
• Collateral Trust Bonds
  Bonds secured by securities held by the issuer in its portfolio, such as shares of its subsidiary.
  

2. Unsecured Bonds
Bonds not secured by specific wealth but guaranteed by the issuer's general wealth.

Types of Bonds Traded on the Stock Exchange
1. Corporate bonds
2. Government bonds
3. Corporate sukuk
4. Government Sharia Securities (SBSN) / Government Sukuk
5. Asset-backed securities