Bonds are long-term and medium-term debt securities that can be traded. Bonds are fixed income investment instruments that provide a fairly stable investment growth rate compared to stocks. The bond itself contains an agreement from the party that issues the securities to pay interest (coupon) in the form of interest (coupon) for a certain period and pay off the principal at the end of the specified time, to the buyer of the bond. Following are the types of bonds that are commonly known:

1. Government Bonds

In the form of Government Securities issued by the Government. These bonds are issued by the government with fixed coupons (FR-Fixed Rate series), variable coupons (VR-Variable Rate series) and with sharia principles/State Sukuk.

2. Corporate Bonds

In the form of debt securities issued by corporations, both state-owned and private. There are some corporate bonds that have been rated or some have not.

3. Retail Bonds

Issued by the Government and sold to individuals through appointed agents. Usually there are several types, namely ORI or Retail Sukuk.

Source: OJK.go.id