Related Words

Prerefunded Bond: Refunded bond.

Refunded Bond: Also called a prerefunded bond, a bond that originally may have been issued as a general obligation or revenue bond but that is now secured by an escrow fund consisting entirely of direct U. . . . View Full Definition

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.

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

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

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.

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

Municipal Bonds: Bonds issued to finance public improvements such as parks, schools and urban renewal projects.