BONDS Meaning and
Definition
-
Bonds, in the context of finance and investing, refer to fixed-income securities or debt instruments that are issued by governments, municipalities, corporations, or other entities to raise capital. These securities are typically sold to investors who, in return for purchasing the bond, lend money to the issuer for a predetermined period. The term "bonds" can also be used interchangeably with the term "fixed-income securities."
Bonds function as IOUs where the issuer promises to repay the principal, or face value, of the bond to the investor at maturity. In the meantime, the issuer makes regular interest payments, known as coupon payments, to the bondholders at a specified rate, usually on a semiannual basis. The interest rate, or yield, is typically determined by various factors including market conditions, creditworthiness of the issuer, and term to maturity.
Different types of bonds exist, each having distinct characteristics. Government bonds, also known as sovereign bonds, are issued by national governments, whereas municipal bonds are issued by local governments. Corporate bonds are issued by companies seeking to raise capital for various purposes. Additionally, there are also different classifications of bonds based on the credit quality of the issuer, such as investment-grade bonds and high-yield, or junk, bonds.
Bonds are considered a relatively safer investment compared to stocks because of their fixed income and seniority in a company's capital structure, providing investors with regular income and return of principal upon maturity. They are often included in investment portfolios to achieve diversification, manage risk, and generate income.
-
Chains; imprisonment; in carp., all the timbers disposed in the wall of a house.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for BONDS
Etymology of BONDS
The word "bonds" has multiple etymological origins, depending on its different meanings:
1. In the sense of restraints or ties, "bonds" derives from the Old English word "bonda", meaning "a householder, husband, master of a household", which itself comes from the Old Norse word "bóndi". This term evolved to refer to someone who had social obligations and responsibilities.
2. In the financial sense, referring to debt securities, "bonds" comes from the Middle English word "bonde", meaning "a certificate or formal obligation". This word originated from the Old Norse word "böndi", which referred to the occupier or tiller of land.
3. In chemistry, "bonds" originates from the Middle English word "bond", meaning "plea" or "agreement".
Similar spelling words for BONDS
- bondage,
- bond,
- bunts,
- bonduc,
- bands,
- bends,
- binds,
- bounds,
- bonus,
- bondsman,
- bones.
Conjugate verb Bonds
CONDITIONAL
I
would bond
we
would bond
you
would bond
he/she/it
would bond
they
would bond
FUTURE
I
will bond
we
will bond
you
will bond
he/she/it
will bond
they
will bond
FUTURE PERFECT
I
will have bonded
we
will have bonded
you
will have bonded
he/she/it
will have bonded
they
will have bonded
PAST
I
bonded
we
bonded
you
bonded
he/she/it
bonded
they
bonded
PAST PERFECT
I
had bonded
we
had bonded
you
had bonded
he/she/it
had bonded
they
had bonded
PRESENT
I
bond
we
bond
you
bond
he/she/it
bonds
they
bond
PRESENT PERFECT
I
have bonded
we
have bonded
you
have bonded
he/she/it
has bonded
they
have bonded
I
am bonding
we
are bonding
you
are bonding
he/she/it
is bonding
they
are bonding
I
was bonding
we
were bonding
you
were bonding
he/she/it
was bonding
they
were bonding
I
will be bonding
we
will be bonding
you
will be bonding
he/she/it
will be bonding
they
will be bonding
I
have been bonding
we
have been bonding
you
have been bonding
he/she/it
has been bonding
they
have been bonding
I
had been bonding
we
had been bonding
you
had been bonding
he/she/it
had been bonding
they
had been bonding
I
will have been bonding
we
will have been bonding
you
will have been bonding
he/she/it
will have been bonding
they
will have been bonding
I
would have bonded
we
would have bonded
you
would have bonded
he/she/it
would have bonded
they
would have bonded
I
would be bonding
we
would be bonding
you
would be bonding
he/she/it
would be bonding
they
would be bonding
I
would have been bonding
we
would have been bonding
you
would have been bonding
he/she/it
would have been bonding
they
would have been bonding
Infographic
Add the infographic to your website:
