Related Words

Ionic Bond: A chemical bond in which atoms of opposite charge are held together by electrostatic attraction.

Polar Bond: A bond involving electrons that are unequally shared. Polar bonds can be thought of as intermediate between the extremes represented by covalent bonds and ionic bonds.

Par Bond: A bond trading at its face value.

PAC Bond: Stands for Planned Amortization Class bond. A tranche class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes.

Passive Bond: A bond without any interest yield.

Peptide Bond: A covalent bond that links two amino acids together to form a polypeptide chain. A covalent bond between the amine end of one amino acid and the acid end of another amino acid.

Payment-In-Kind (PIK) Bond: A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds.

Optional Payment Bond: A bond whose principal and/or interest may be paid in foreign or domestic currency at the discretion of the bondholder.

Obligation Bond: Mortgage bond whose face value exceeds the value of the underlying property, and for which a personal obligation is created to compensate the lender for any costs that may exceed the value o . . . View Full Definition

Municipal Bond Insurance: An insurance policy that guarantees payment on municipal bonds in the event the issuer defaults.