A(n) -Select-perpetuitybondoptionItem 1 is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There are four main types reflecting who the issuers are: -Select-GovernmentBusinessTreasuryItem 2 , corporate, state and local government, and foreign. Each type differs with respect to -Select-riskmaturityredemptionItem 3 and expected return. All have some common characteristics even though they may have different contractual features.