Sour Bond: A company's ability to satisfy its obligations to creditors when they are due. A company is 'technically insolvent' if it has enough assets to pay creditors, but cannot liquidate them quickly enough to meet payment deadlines.

 

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Sour Bond: A company's ability to satisfy its obligations to creditors when they are due. A company is 'technically insolvent' if it has enough assets to pay creditors, but cannot liquidate them quickl . . . View Full Definition

Primary Source: Literary scholars distinguish between primary sources, secondary sources, and educational resources. Students should also. To understand the difference, click here.

Prerefunded Bond: Refunded bond.

Premium Bond: A bond that is selling for more than its par value.

Primary Source Verification: A process through which an organization validates credentialing information from the organization that originally conferred or issued the credentialing element to the practitioner.

Prior-Lien Bond: A bond usually arising from reorganization with precedence over another bond of the same issuing company that is equally secured.

Public-Purpose Bond: A specific type of municipal bond used to finance public projects such as roads or government buildings. Interest on municipal bonds is federal income tax-free.

Public Housing Authority Bond: Bonds of local public housing agencies that are secured by the federal government and whose proceeds are used to provide low-rent housing.

Private-Purpose Bond: A municipal bond allowing more than 10% of the proceeds go to private activities.

Positive Covenant (Of A Bond): A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.