Bond

 

Home
Site Map
Add Term
Search
About Us
Contributors

Bond

A 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.

Bond

The 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 Matches

Optional payment bond

Optional payment bond

A bond whose principal and/or interest may be paid in foreign or domestic currency at the discretion of the bondholder.


Consolidated mortgage bond

Consolidated mortgage bond

A bond that covers several units of property, sometimes refinancing mortgages on the properties.


Bond market association

Bond market association

An international trade association of broke../../finance-glossary/broker and banks in US government and federal agency broker, municipal securities, broker, and broker securities.


Automated bond system (ABS)

Automated bond system (ABS)

The computerized system that records bids and offers for inactively traded bonds until they are cancelled or executed on the NYSE.


High coupon bond refunding

High coupon bond refunding

../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond.


Further Suggestions

municipal bond insurance
Citizen bonds
Bond points
investment bond
short bond
Convertible eurobond
bulldog bond
Dollar bonds
Mortgage Bonds
Medium term bond
Utility revenue bond
TAC bonds
Deferred interest bond
Bond mutual fund
medium term bond
Full coupon bond
Bond agreement
Nine bond rule
Stripped bond
Companion bonds
Super sinker bond
Savings bond
Bonds Enabling Annual Retirement Savings (BEARS)
Eurobond
Policyholder loan bonds


 
All rights Reserved. Do not copy without permission.