Bond

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. A guarantee provided by one party to another as part of a contract.

3. 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

• Agent bank
• Bearer bond
• Bond futures
• Bond issue
• Bond mandate
• Bulldog bond
• Callable bond
• Catastrophe bond
• Clean price
• CMO
• Convertible bonds
• Corporate bond
• Coupon bond
• Dirty price
• Drop-lock bond
• Eurobond
• Exchangeable bond
• Floating rate note
• Foreign bond
• Gilts
• Government paper
• Guarantee
• Investment-grade bond
• Obligation
• Par bond
• Par yield
• Paying agent
• Performance bond
• Redeemable bond
• Security
• Shallow discount bond
• Short term
• Straight bond
• Yield to maturity