Explain various kinds of bonds to the interviewer, drawing on the following definitions.

Firstly, a plain vanilla bond has a fixed maturity and expiry date, as well as when the principal is due and how much interest is paid at what intervals.

Secondly, a convertible bond provides the option to buy stock, this offsets the reason they might issue stock in the first place. A callable bond allows the issuer the option of redeeming the bond before its maturity date.