a bond is a valuable security. Because the interest of bonds is usually determined in advance, bonds are a kind of fixed-interest securities (fixed-interest securities). In countries and regions with developed financial markets, bonds can be listed and circulated. In China, the typical government bonds are Treasury bills. People's improper speculation on bonds, such as short selling out of stock, can lead to financial market turmoil.

income calculation is divided according to whether it is convertible or not:

1. Convertible bonds

Convertible bonds refer to bonds that can be converted into common shares in a certain proportion in a specific period of time, which have dual attributes of debt and equity and belong to a mixed financing method. Because convertible bonds give bondholders the right to become shareholders of the company in the future, their interest rates are usually lower than those of non-convertible bonds. If the conversion is successful in the future, the issuing enterprise can achieve the purpose of low-cost financing before the conversion, and can save the issuing cost of the stock after the conversion. According to the provisions of the Company Law, the issuance of convertible bonds should be approved by the securities management department of the State Council, and the issuing company should have the conditions to issue corporate bonds and stocks at the same time.

Convertible bonds listed on Shenzhen and Shanghai stock exchanges refer to corporate bonds that can be converted into stocks, which have both the characteristics of stocks and ordinary bonds. An important feature is the conversion price. After the agreed time limit, investors can convert their convertible bonds into shares at any time according to the share price. The interest rate of convertible bonds is the ratio of average annual interest to par value, which is generally lower than that of ordinary corporate bonds, and is usually issued at par value. The conversion price is the par value of corporate bonds required to convert each issued share.

2. Non-convertible bonds

Non-convertible bonds refer to bonds that cannot be converted into ordinary shares, also known as ordinary bonds. Because it does not give bondholders the right to become shareholders of the company in the future, its interest rate is generally higher than that of convertible bonds.