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.
Serial bondSerial bond
A bond which is arranged to be repaid in instalments over a period of time.
Authority bondAuthority bond
A 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 bond
Government bonds that when owned at the time of death are acceptable at par in payment of federal estate taxes.
Commodity backed bondCommodity backed bond
A bond with interest payments tied to the price of an underlying commodity.
Municipal bond insuranceMunicipal bond insurance
An insurance policy which guarantees payment on municipal bonds in the event of default .
Further SuggestionsSplit coupon bond
Short term bond fund
Dollar price of a bond
Active bond crowd
Public purpose bond
Lehman Brothers Government Bond Index
Public housing authority bond
Essential purpose (or function) bond
Private purpose bond
Nine bond rule
Lehman Brothers Government or Corporate Bond Index
Pure discount bond
Tax exempt bond
General Mortgage Bond