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Bond
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| | A bond is a legal contract in which a borrower such government, company or institution issues a certificate by which promises to pay its creditors a specific rate of [[Interest|interest]] for a fixed [[Duration|duration]] and then redeem the contract at [[Face Value|face value]] on [[Maturity|maturity]]. In theory bonds are safer than [[Stock|stock]]s because they have a fixed maturity and are repaid before any payments are made to [[Shareholder|shareholder]]s. But if a company fails its bond holders may suffer just as much as its shareholders. | | A bond is a legal contract in which a borrower such government, company or institution issues a certificate by which promises to pay its creditors a specific rate of [[Interest|interest]] for a fixed [[Duration|duration]] and then redeem the contract at [[Face Value|face value]] on [[Maturity|maturity]]. In theory bonds are safer than [[Stock|stock]]s because they have a fixed maturity and are repaid before any payments are made to [[Shareholder|shareholder]]s. But if a company fails its bond holders may suffer just as much as its shareholders. |
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| - | See also: [[Convertible Bond]], [[Bearer Shares/Bonds]], [[Bullet Bond]], [[Fixed Income]], [[Senior Secured Debt]], [[Coupon]], [[Debt]], [[Treasury Bond]], [[Treasury Bill]], [[Treasury Note]] | + | See also: [[Convertible Bond]], [[Bearer Shares/Bonds]], [[Bullet Bond]], [[Fixed Income]], [[Senior Secured Debt]], [[Coupon]], [[Debt]], [[Treasury Bond]], [[Treasury Bill]], [[Treasury Note]], [[Treasuries]] |
Revision as of 08:56, 6 October 2009
A bond is a legal contract in which a borrower such government, company or institution issues a certificate by which promises to pay its creditors a specific rate of interest for a fixed duration and then redeem the contract at face value on maturity. In theory bonds are safer than stocks because they have a fixed maturity and are repaid before any payments are made to shareholders. But if a company fails its bond holders may suffer just as much as its shareholders.
See also: Convertible Bond, Bearer Shares/Bonds, Bullet Bond, Fixed Income, Senior Secured Debt, Coupon, Debt, Treasury Bond, Treasury Bill, Treasury Note, Treasuries