How Do You Spell AGENCY BOND?

Pronunciation: [ˈe͡ɪd͡ʒənsi bˈɒnd] (IPA)

The correct spelling of the word "AGENCY BOND" is [ˈeɪdʒənsi bɑnd]. In phonetic transcription, the initial vowel sound is represented by the letter "a" followed by the "j" sound. In the second part of the word, the "o" sound is represented by the letter "a." The emphasis is placed on the first syllable, "A-GEN-cy," while the second syllable "bond" is pronounced with a short "o" sound. Overall, correct spelling of finance terms, such as "AGENCY BOND," is crucial in the world of investments and financial planning.

AGENCY BOND Meaning and Definition

1. An agency bond refers to a type of debt security issued by various government agencies or federally sponsored enterprises (FSEs) to finance their operations or specific projects. These agencies are typically established by the government to fulfill specific purposes in sectors such as housing, agriculture, education, or infrastructure development. Unlike government bonds issued directly by the government, agency bonds are backed by the creditworthiness and guarantee of the issuing agency or enterprise rather than the full faith and credit of the government itself.

   Agency bonds are regarded as relatively safe investments due to the backing of reputable government-sponsored entities, which reduces the risk associated with default. This perception often leads to agency bonds offering lower yields compared to other types of bonds with similar maturities and credit quality. However, investors should still evaluate the individual issuing agency's financial standing, credit rating, and the overall health of the sector it operates in.

   Furthermore, agency bonds may have specific tax advantages or exemptions in certain jurisdictions, making them attractive investments for investors seeking tax-efficient income. These bonds are typically offered in the primary market through auctions or underwriting, and are also traded in the secondary market, providing liquidity for investors.

   In summary, agency bonds are fixed-income securities issued by government-sponsored entities or agencies to finance activities in various sectors. They offer a relatively safe investment option backed by the issuing agency's creditworthiness, and may have tax advantages depending on the jurisdiction.

Common Misspellings for AGENCY BOND

• zgency bond
• sgency bond
• wgency bond
• qgency bond
• afency bond
• avency bond
• abency bond
• ahency bond
• ayency bond
• atency bond
• agwncy bond
• agsncy bond
• agdncy bond
• agrncy bond
• ag4ncy bond
• ag3ncy bond
• agebcy bond
• agemcy bond
• agejcy bond
• agehcy bond

Etymology of AGENCY BOND

The word "agency bond" is a combination of "agency" and "bond", both of which have distinct origins.

The term "agency" originated from the Latin word "agens" or "agentis", which means "one who acts" or "to do". In English, it refers to an organization or individual that operates on behalf of another party, carrying out certain tasks or functions. In the financial context, an agency often refers to a government-sponsored entity or organization that issues debt securities.

The word "bond" comes from the Old English word "bonda" or "bund", which means "to bind". This word evolved into "bond" in Middle English, referring to a legal obligation or agreement. In the financial context, a bond is a fixed income investment instrument where the issuer borrows capital from investors and promises to pay them back with interest over a specified period of time.