, May 21 -- Bonds are used by issuers to raise money from the capital market. In layman's terms, bonds are essentially instruments of debt created between the lender and the borrower. During certain economic situations, there might be a need for capital generation. As a result, it's normal to see a host of bonds being circulated in the market.

But how do you know which bond is right for you? What factors should you consider before investing in a certain bond? Let's find out.

Types of Bonds

There are several ways to classify bonds. The most common ones are based on issuer, maturity, interest payment structure, and features. Let's look at the different bonds under each basis.

Based on Issuer

Treasury Bonds

Treasury bonds are issued by...