Bond
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 Glossary   >   B   >   "Bond" Definition   

        Bond

A certificate of debt, generally long term, under the terms of which an issuer contracts, amongst other things, to pay the holder a fixed principal amount on a stated future date and, usually, a series of interest payments during its life.

Bonds are debt and are issued for a period of more than one year. The U.S. government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically.

A debt investment, with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate

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.

Bond


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Bond \ A certificate of debt, generally long term, under the terms of which an issuer contracts, amongst other things, to pay the holder a fixed principal amount on a stated future date and, usually, a series of interest payments during its life.

Bonds are debt and are issued for a period of more than one year. The U.S. government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically.

A debt investment, with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate

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.


Bond / a certificate of debt, generally long term, under the terms of which an issuer contracts, amongst other things, to pay the holder a fixed principal amount on a stated future date and, usually, a series of interest payments during its life.

bonds are debt and are issued for a period of more than one year. the u.s. government, local governments, water districts, companies and many other types of institutions sell bonds. when an investor buys bonds, he or she is lending money. the seller of the bond agrees to repay the principal amount of the loan at a specified time. interest-bearing bonds pay interest periodically.

a debt investment, with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate

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.