Select all the correct answers.

Which are two features of a bond?

Answer: Government bond and

Corporate Bond

Explanation:

Government Bond: At periodic intervals, the central or state government issues bond, popularly known as government securities (G-secs) or gilt edged securities. These are issued by the central bank of the country on behalf of the Government, for medium to long term, on which interest is paid on half yearly basis.

Corporate Bond: When public companies issues bonds, they are known as a corporate bond. When it comes to international market, a secured corporate debt instrument is known as a corporate bond, but in the case of the unsecured debt instrument, it is known as a corporate debenture. In India, corporate debt instruments are termed as debentures.

Bonds issued by the government are considered as risk-free while those issued by the corporates are exposed to risk.