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Bond




A debt obligation issued by a government (i.e., Treasury bond) or corporation (i.e., corporate bond) that promises to pay its bondholders periodic interest at a fixed rate (the coupon), and to repay the principal of the loan at maturity (a specified future date).

Debt issued for a period of more than one year. When investors buy bonds, they are lending money; the seller of the bond agrees to repay the principal amount of the loan at a specified time.



Additional Comments:

Bonds are usually issued with a par or face value of $1,000, representing the principal or amount of money borrowed. The interest payment is stated on the face of the bond at issue.

Related Terms:

Treasury Bill
The Treasury bill, or T-bill, is a zero coupon bond issued for terms of one month ...

Maturity
The date on which a bond's principal is repaid to the investor and interest payments cease. ...

Treasury Bond
U.S. Treasury bonds, also known as long bonds, are issued in 30-year terms.The T-bond is ...





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