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Collateral trust bonds are bonds that
use other securities as collateral.
Mortgage bonds are backed (or
collateralized) by mortgages on specific assets or physical property of
the company issuing them.
Equipment trust certificates are certificates that
offer equipment as backing. Railroads and airlines commonly use them.
Zero coupon bonds are bonds that do not pay
periodic interest but are sold at a discount to make up for the lack of interest
payments. Instead of receiving interest, the holder receives the full face value
of the bond at maturity.
Convertible bonds are bonds that can be converted
into shares of common stock, though certain provisions are attached.
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