Straight Bond

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Dictionary Says

Definition of 'Straight Bond'

A bond that pays interest at regular intervals, and at maturity pays back the principal that was originally invested. Straight bonds are debt instruments because they are essentially loaning money (creating debt) to an entity. The entity (government, municipality, or organization) promises to pay the interest on the "debt" and at maturity pay back the original loan.
Investopedia Says

Investopedia explains 'Straight Bond'

A straight bond is the most basic of debt investments. It is also knows as a plain vanilla bond because there are no additional features that other bonds might have. For example, some bonds can be converted into shares of common stock. As with all bonds there is default risk, which is the risk that the company could go bankrupt and no longer honor its debt obligations.

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'Straight Bond'

  • Straight AAAs For Failing Bond Insurers

    http://stocks.investopedia.com/stock-analysis/2008/Straight_AAAs_For_Failing_Bond_Insurers.aspx
    ... Article; Comments (0). Straight AAAs For Failing Bond Insurers.
    Posted: Feb 27, 2008 15:23 PM by Wayne Pinsent. ...

  • Advanced Bond Concepts: Duration | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond5.asp
    ... Duration of a Vanilla or Straight Bond Consider a vanilla bond that pays
    coupons annually and matures in five years. Its cash flows ...

  • Advanced Bond Concepts: Bond Pricing | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond2.asp
    ... (Coupons on a straight bond are paid at ordinary annuity.) The first payment of
    an ordinary annuity occurs one interval from the time at which the debt ...

  • Convertible Bonds: Pros And Cons For Companies And Investors

    http://www.investopedia.com/articles/bonds/08/convertible-financing.asp
    ... Another is that the company is able to offer the bond at a lower coupon
    rate - less than it would have to pay on a straight bond. ...

  • Interest Rates And Your Bond Investments

    http://www.investopedia.com/articles/03/122203.asp
    ... year time horizon and if interest rates were going to hold steady, you would, of
    course, do much better to go straight into buying the two-year bond (which has ...

  • Beginner's Guide To Tax Efficient Investing

    http://www.investopedia.com/articles/stocks/11/intro-tax-efficient-investing.asp
    ... upside potential. In addition, straight-preferred stockholders, like bond
    holders, are paid ahead of common stockholders. They also ...

  • Advanced Bond Concepts: Convexity | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond6.asp
    ... This means that the graph forms a curve rather than a straight-line (linear). The
    degree to which the graph is curved shows how much a bond's yield changes in ...

  • When To Trust Bond Rating Agencies

    http://www.investopedia.com/articles/bonds/09/bond-rating-agencies.asp
    ... This will provide the basic groundwork in simple, straight-forward terms ... This precludes
    small or up-and-coming companies from ever entering the bond market and ...

  • Advanced Bond Concepts: Bond Type Specifics | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond1.asp
    ... Straight, plain vanilla or fixed-rate bonds pay an absolute coupon rate over a
    specified ... the last coupon payment is made along with the par value of the bond. ...

  • Use Duration And Convexity To Measure Bond Risk

    http://www.investopedia.com/articles/bonds/08/duration-convexity.asp
    ... The straight line, tangent to the curve, represents the estimated change in price
    via ... rates, the larger the error in estimating the price change of the bond. ...

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