Stock Analysis on Net
Stock Analysis on Net

Bonds

A bond is a security that represents money borrowed from the investing public. When a corporation issues bonds, it enters into a contract, called a bond indenture, with the bondholders. The bond indenture identifies the major conditions of the bonds. A corporation can issue several types of bonds, each having different characteristics. For example, a bond issue may or may not require security (secured versus unsecured bonds). It may be payable at a single time (term bonds) or at several times (serial bonds). And the holder may receive interest automatically (registered bonds) or may have to return coupons to receive interest payable (coupon bonds).


See also