Real estate mortgage bonds have a specific claim against certain real property of the issuer, such as land and building. A chattel mortgage bond has a claim against personal property, such as the securities owned by the bond issuer, such as stocks or bonds. Income bonds are bonds on which interest payments are made only from operating income of the issuing entity. Senior securities are securities that have claims that must be satisfied before payments can be made against junior securities. Registered bonds are issued in the name of the owner and are recorded in the owner's name on the records of the issuer.
Coupon bonds are bearer bonds that can be transferred from one investor to another by delivery.
Interest coupons are attached to the bonds. On interest payment dates, the coupons are detached and submitted for payment to the issuer or an agent. Sinking fund bonds are bonds for which a fund is established into which periodic cash deposits are made for redeeming outstanding bonds. Bonds may be sold by the issuing company directly to investors or to an investment banker who markets the bonds. The price of bonds can be determined either by a mathematical computation or from a Bond Values Table.