SERIES BOND Meaning and
Definition
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A series bond is a type of investment instrument issued by companies or governments to raise long-term capital to fund various ventures and initiatives. Specifically, a series bond represents a particular issuance of a company's or government's overall bond program, typically the second round of offerings after the initial issuance referred to as the series A bond.
The purpose of a series bond is to allow the issuer to access additional financing with lower costs compared to other forms of financing. This is because series bonds are often regarded as lower-risk investments, attracting investors seeking steady income streams and stable returns over a predetermined period.
These bonds are typically issued for a fixed term, during which the issuer makes regular interest payments at a specified coupon rate to bondholders. At the end of the term, the bond matures, and the issuer repays the principal amount to the bondholders. Series bonds are often classified as unsecured debt, meaning there is no specific collateral associated with them.
Investors in series bonds are exposed to the credit risk of the issuer, with higher-rated companies or governments typically being considered more reliable. However, the risk can be mitigated by diversifying one's bond portfolio across different issuers and considering the evaluations of credit rating agencies.
Overall, series bonds provide a means for companies and governments to obtain capital while offering investors a relatively safe and predictable investment option with fixed income and defined maturity dates.
Common Misspellings for SERIES BOND
- aeries bond
- zeries bond
- xeries bond
- deries bond
- eeries bond
- weries bond
- swries bond
- ssries bond
- sdries bond
- srries bond
- s4ries bond
- s3ries bond
- seeies bond
- sedies bond
- sefies bond
- seties bond
- se5ies bond
- se4ies bond
- serues bond
- serjes bond
Etymology of SERIES BOND
The word "series bond" does not have a specific etymology because it is a combination of two words: "series" and "bond".
1. "Series" comes from the Latin word "series" meaning "a row, line, sequence". It entered English in the 17th century, referring to things arranged in a specific order or sequence. Over time, "series" expanded to include a range of related things, such as a set of books, episodes of a TV show, or a sequence of numbers.
2. "Bond" comes from the Old English word "bonda" meaning "a householder, husband" and later "a secure arrangement or obligation". It evolved from the notion of a bond holding individuals together in a social or legal agreement. In the financial context, a bond refers to a debt instrument issued by a government or corporation to raise funds, which promises fixed interest payments over a specific period.
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