1. installment interest payment: the borrower only needs to repay the interest in each installment and the principal in one lump sum at the end of the loan. In this way, the borrower has less burden in each installment, but needs to repay all the principal in one lump sum at the end of the loan. This method is suitable for the situation that the borrower is short of funds during the loan period, but has the ability to repay all the principal at the end of the period.

2. One-time repayment of principal and interest: the borrower repays all principal and interest in one lump sum at the end of the loan. During the whole loan period, the borrower does not need to repay the principal every installment, but only needs to repay the interest. In this way, the borrower has a heavy burden in each period, but he can pay off all the debts in one lump sum at the end of the loan. This method is suitable for the situation that the borrower has a steady inflow of funds during the loan period and can repay all the debts at the end of the period.

Is installment bond simple interest or compound interest?

Pure profit. Simple interest bond is a form of bond that pays interest in installments. In a simple interest bond, the bondholder collects interest at a fixed interest rate within a certain period of time and returns the principal in one lump sum on the maturity date. This kind of bond has a fixed principal, term and interest amount, and investors can't change these conditions when they buy it. The issuer of simple interest bonds has determined these parameters at the time of issuance. The choice of simple interest bonds can be decided according to the individual's investment needs and risk tolerance.