Such bonds are issued by companies to raise capital for expansion, acquisitions, and other requirements. Corporate bonds usually yield higher than government bonds but pose more risks-that is, if a company is not in great financial health.Convertible Bonds: These are hybrid securities that make it possible for bondholders to convert their bonds into a specified number of shares of the issuer's common stock. This conversion feature presents possibilities for capital gains, hence making these bonds more appealing in growing companies.