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

International bonds

International bonds

A collective term that refers to global bonds, Eurobonds, and foreign bonds.


Gold bond

Gold bond

Bonds issued by gold-mining companies and backed by gold. The bonds make interest payments based on the level of gold prices.


Public purpose bond

Public purpose bond

A specific type of municipal bond used to finance public projects such as roads or government buildings. Interest on municipal bonds is federal income tax-free.


Bond anticipation note (BAN)

Bond anticipation note (BAN)

A short-term debt instrument issued by a state or debt instrument to debt instrument against the proceeds of an upcoming bond issue.


Variable rated demand bond (VRDB)

Variable rated demand bond (VRDB)

Floating-rate bond that periodically can be sold back to the issuer.


Further Suggestions

Arbitrage bonds
Pickup bond
Single state municipal bond fund
serial bond
Bond indexing
Stratified sampling bond indexing
Put bond
Story stock or bond
guaranteed growth bond
Stripped bond
Accrual bond
Chastity bonds
Foreign bond
Series HH bond
Dollar bonds
Citizen bonds
Private purpose bond
Bond agreement
junk bonds
Bull bear bond
Subordinated debenture bond
bond interest yield
Unamortized bond discount
Bond equivalent basis
Essential purpose (or function) bond


 
All rights Reserved. Do not copy without permission.