What does bond classification mean?

bond classification meaning in Law Dictionary

They style of bond offered. It could be collateral, convertibility, maturity, cost, or transfer method.

bond classification meaning in Business Dictionary

As a hard and fast income security, a bond is categorized based on (1) Collateral: perhaps the bond is completely secured by a particular asset that can be sold because of the bondholder to fulfill a claim (see secure relationship), or perhaps is guaranteed only because of the issuer's reputation and credit (see debenture). (2) Convertibility: whether the bond can be exchanged for any other securities of the providing business at a future time (see convertible relationship). (3) Maturity: whether or not the bond has one readiness date or several, and how very long could be the maturity period: much longer the maturity duration, greater the danger and greater the attention rate. (4) cost: whether or not the relationship is sold below par value, at par price, or above par worth. (5) Transfer method: if it is a bearer-bond or a registered relationship.