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
