Citibank offers you the choice to purchase several different types of bonds. You can invest in the bond market in a variety of ways, such as through:
Fixed Rate Bond
Coupon interest is known until the maturity of the bond
Floating Rate Bond
Coupons are variable and are frequently adjusted to reflect prevailing market interest rates. The advantage is that it provides the investor with a return commensurate with the prevailing market rate. When investing in Floating Rate Bonds, the investor is taking the bond issuer's credit risk. Compared to Fixed and Zero Coupon Bonds, Floating Rate Bonds are less risky investments
Zero Coupon Bond
No interest payable throughout the life of the bond. The offer price is usually at a deep discount (e.g. purchase at US$70 and matures at US$100 in 5 years)
Callable Bond
The issuer has the option to redeem the bond before maturity on specific dates at specific prices. Due to this callable feature, the coupon rate is usually higher