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| | Pick Brains - Types of bonds (Site not responding. Last check: 2007-10-29) |
 | | Bonds with a poor credit rating are sometimes known as junk bonds. |
 | | Inflation-indexed bonds, in which the principal (or "face" value) is indexed to inflation, which causes higher interest payments (interest is calculated as the coupon rate multiplied by the principal amount). |
 | | Subordinated bonds are those that have a lower priority than other debts of the issuing corporation, so if there is not enough money to pay all the company's debts, the "senior" (higher-priority) bonds are paid first, and the subordinate bonds are paid out of what money, if any, is left. |
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