Question

How would we know the bond is Convertible, Vanilla Bond and Callable bond? If we have to choose one bond which would be the most suitable for you?

Answer 1

Convertible bond is a type of bond that can be converted into a specified number of shares of common stock in the issuing company or cash of equal value

Vanilla bond is one of the simplest bond without any unusual features it has a fixed coupon and a defined maturity and generally issued and redeemed at face value.

Callable bond is a bond that can be redeemed before the maturity date so this type type of bond allows the issuing company to pay off their debt early. decisions can be easily taken in these types of bond if market interest rates fluctuate if market interest rates move in a favorable direction so business can choose to call their bond because it will allow them to borrow at a more beneficial rate.  

Callable bonds will be the  most suitable bonds for us because it can be redeemed any time and we can invest our money in some other more beneficial transactions

Callable bonds also benefit investors as they typically offer an attractive interest rate or coupon rate due to their callable nature. Another name for callable bonds is a redeemable bond.