Bond

Bond - TaxLawDictionary.comTax Law Term “Bond

A note or obligation made by a corporation or other entity to repay money loaned to it by the bondholder or predecessor in title. The Internal Revenue Code defines the term to include any obligation. Mortgage bonds are backed by collateral. Indenture bonds are secured only by the credit of the issuer. Generally, bonds are debt instruments, with interest paid periodically, issued by companies or other entities for a period of more than one year.

A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates. InvestingAnswers

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds.  Wikipedia

A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. A bond has an end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments that will be made by the borrower. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt-holders, or creditors, of the issuer.  Investopedia

Browse topics related to ‘Bond’