Bonds that deviate from the standard pattern .

A. Modification of the unqualified right to a fixed-interest payment on fixed dates :

1) Income Bonds : These are sometimes called "Adjustment Bonds." The amount of interest payable thereon is dependent upon the amount of earnings available therefor up to a stated maximum.Payment of interest is sometimes wholly of partially discretionary with the directors.Interest may be cumulative or non cumulative.

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2) Hybrid issues on which interest is contingent for a time and a fixed charge thereafter :

Typical Examples :

3) Bonds on which a part of the interest burden is a fixed charge and a part contingent upon earnings and/or upon the discretion of the directors :

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4) Bonds on which interest payments may be deferred :

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5) Issues on which the rate of interest is graduated up or down :

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6) Bonds with the option of the holder receiving his interest payments in cash or in stock of the company :

Typical Examples :

7) Non-interest-bearing obligations : ( Zero Coupon Bonds / Strip Bonds ) :

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8) Rate of interest contingent upon rate paid on the preferred stock of the obligor :

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9) Interest payment subordinated to dividends on preferred stocks of the obligor :

Typical Examples :