For an individual or an institution to invest in any type of bond the following factors must be considered. They are actually the ones determining the best bond to invest in.

1)The amount of cash at your disposal. Different bond issuers have different minimum deposit requirement for opening different accounts with them. Therefore depending on the lump of cash you have.

2)How long you are willing to commit your money. This will actually act as a guiding facture when choosing the bonds account with a maturity period that matches with the time you are willing to wait.

3)There is a penalty for cashing out before the maturity date.

4)The age of the bondholder. Mostly minors are not allowed to have a bond account but in some countries like the United States of America there are some savings bonds accounts that a minor can open.

5)Also you may want to consider the interest rate associated with the bond you are considering. Different bonds accounts will offer different interest rates.

6)Citizenship. Some savings bond account require that you be a citizen of that country for example the Canada saving bonds.

NOTE:The bond that is suitable to your colleague does not necessarily have to suite you at allow.

Below are some types of bond that you may consider while doing your selection.

1)Fixed rate bonds –they have a coupon that remains constant throughout the life of the bond.

2)Floating rate notes (FRNs) - have a variable coupon that is linked to a reference rate of interest.

3)Zero-coupon bonds -they pay no regular interest.

4)High-yield bonds (junk bonds) - they are rated below investment grade by the credit rating agencies.

5)Convertible bonds – they let a bond holder exchange a bond to a number of shares of the issuer's common stock.

6)Exchangeable bonds - they allows for exchange to shares of a corporation other than the issuer.

7)Inflation-indexed bonds - here the principal amount and the interest payments are indexed to inflation.

8)Subordinated bonds – they are those that have a lower priority than other bonds of the issuer in case of liquidation.

9)Covered bonds – they are backed by cash flows from mortgages or public sector assets.

10)Perpetual bonds - They have no maturity date.

11)Bearer bond – it is an official certificate issued without a named holder meaning the person who has the paper certificate can claim the value of the bond.

12)Government bond – they are also called Treasury bond and are issued by a national government.

13)Retail bonds – these are a type of corporate bond mostly designed for ordinary investors.

14)Social impact bonds – they are an agreement for public sector entities to pay back private investors after meeting verified improved social outcome goals that result in public sector savings from innovative social program pilot projects.

15)Book-entry bond – this is a bond that does not have a paper certificate.