Bond: Difference between revisions

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imported>Doug Williamson
(Added On-demand bond to see also)
imported>Doug Williamson
(Link with Indemnity page, re-order and increase spacing.)
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1.  
1.  
A marketable longer-term debt instrument usually administered by a trustee. Bonds typically require the issuer to repay the amount borrowed plus interest over a designated period of time. The current market yield on the bond is both the market rate of return to the debt investor and the pre-tax market cost to the issuer of debt capital.   
 
A marketable longer-term debt instrument usually administered by a trustee.  
 
Bonds typically require the issuer to repay the amount borrowed plus interest over a designated period of time.  
 
The current market yield on the bond is both the market rate of return to the debt investor and the pre-tax market cost to the issuer of debt capital.   
 
Issuers of bonds include a wide range of corporate and public sector entities, including central governments.
Issuers of bonds include a wide range of corporate and public sector entities, including central governments.


2.  
2.  
A guarantee provided by one party to another as part of a contract.
 
An instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.
 
Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.
 


3.  
3.  
A guarantee provided by one party to another.
4.
An amount of money provided as security for a guarantee.
An amount of money provided as security for a guarantee.


4.
An instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract. 
Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.


== See also ==
== See also ==
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* [[Government paper]]
* [[Government paper]]
* [[Guarantee]]
* [[Guarantee]]
* [[Indemnity]]
* [[Investment-grade bond]]
* [[Investment-grade bond]]
* [[Obligation]]
* [[Obligation]]

Revision as of 11:54, 21 March 2015

1.

A marketable longer-term debt instrument usually administered by a trustee.

Bonds typically require the issuer to repay the amount borrowed plus interest over a designated period of time.

The current market yield on the bond is both the market rate of return to the debt investor and the pre-tax market cost to the issuer of debt capital.

Issuers of bonds include a wide range of corporate and public sector entities, including central governments.


2.

An instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.

Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.


3.

A guarantee provided by one party to another.


4.

An amount of money provided as security for a guarantee.


See also