Related Words

Adjustment Bond: A bond issued in exchange for outstanding bonds when a corporation facing bankruptcy is recapitalized.

Pay Adjustment: Any change made to the pay rate of an employee, such as an increase or decrease to the rate of pay.

Passive Bond: A bond without any interest yield.

Par Bond: A bond trading at its face value.

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.

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.

Performance Bond: A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled.

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.

Perpetual Bond: Nonredeemable bond with no maturity date that pays regular interest rates indefinitely.

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