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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.Similar MatchesSerial bondSerial bondA bond which is arranged to be repaid in instalments over a period of time. Authority bondAuthority bondA bond issued by a government agency or a corporation created to manage a revenue-producing public enterprise. The difference between an authority bond and a municipal bond is that margin protections may be incorporated in the authority bond contract as well as in the legislation that enables the authority. Flower bondFlower bondGovernment bonds that when owned at the time of death are acceptable at par in payment of federal estate taxes. Commodity backed bondCommodity backed bondA bond with interest payments tied to the price of an underlying commodity. Municipal bond insuranceMunicipal bond insuranceAn insurance policy which guarantees payment on municipal bonds in the event of default . Further SuggestionsSplit coupon bondConvertible bond Short term bond fund Dollar price of a bond Active bond crowd corporate bond Public purpose bond Lehman Brothers Government Bond Index Public housing authority bond Reset bonds Essential purpose (or function) bond Bond premium Passive bond Shogun bond Private purpose bond Bonded warehouse Nine bond rule Prerefunded bond Lehman Brothers Government or Corporate Bond Index Pure discount bond Bond counsel Tax exempt bond Bond power General Mortgage Bond bulldog bond |
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