BondA debt instrument, issued by a borrower and promising a specified stream of payments to the purchaser, usually regular interest payments plus a final repayment of principal. Bonds are exchanged on open markets including, in the absence of capital controls, internationally, providing a mechanism for international capital mobility.
BondThe generic name for a tradable loan security issued by governments and companies as a means of raising capital.The bond guarantees its holder:repayment of capital at a future specified date (the maturity date)a fixed rate of interest (also known as the coupon)Government bonds are known as gilts or Treasury Stock.Bonds offer certainty of income, but may fail to keep pace with inflation.As far as the capital is concerned, you only know exactly how much your bond is worth if you plan to hold it to maturity (when you will be paid back the face value). But in the time between issue and maturity, a bond's value can be as volatile as a share, and if you plan to sell before maturity you run the risk of capital erosion. In general:Bond prices fall when bank interest rates go up (because the interest rate rise attracts money out of bonds into cash)Fear of rising inflation will cause bond prices to fall, because investors worry that bonds will not bring enough income to keep pace with inflationThe German and American bond markets have an effect on UK bond prices, because they are competing for the same institutional capital.
Municipal bond insuranceMunicipal bond insurance
An insurance policy which guarantees payment on municipal bonds in the event of default .
Premium bondPremium bond
A bond that is selling for more than its par value.
I bondsI bonds
Treasury savings bonds with a 30-year maturity indexed to account for inflation.
Domestic bondsDomestic bonds
Bonds issued and traded within the internal market of a country and denominated in the currency of that country.
High coupon bond refundingHigh coupon bond refunding
../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond.
Further SuggestionsUnamortized bond discount
Bond anticipation note (BAN)
guaranteed income bond
Lehman Brothers Municipal Bond Index
Bonds Enabling Annual Retirement Savings (BEARS)
Lehman Brothers New York Municipal Bond Index
Commodity backed bond
Unlimited tax bond
children's bonus bond
Lehman Brothers Aggregate Bond Index
Public purpose bond
Series E bond
Level coupon bond