Term Bond
Definition of 'Term Bond'Bonds from the same issue that share the same maturity dates. Term bonds that have a call feature can be redeemed at an earlier date than the other issued bonds. A call feature, or call provision, is an agreement that bond issuers make with buyers. This agreement is called an "indenture", which is the schedule and the price of redemptions, plus the maturity dates. |
|
Investopedia explains 'Term Bond'Some corporate and municipal bonds are examples of term bonds that have 10-year call features. This means the issuer of the bond can redeem it at a predetermined price, at specific times before the bond matures.A term bond is the opposite of a serial bond, which has various maturity schedules at regular intervals until the issue is retired. |
Related Definitions
Articles Of Interest
-
When Your Bond Comes Calling
Callable bonds can leave investors with a pile of cash in a low-interest market. Find out what you can do about it. -
The Advantages Of Bonds
Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment. -
Callable Bonds: Leading A Double Life
Find out more about these dangerous and exciting cousins to regular bonds. -
5 Basic Things To Know About Bonds
Learn these basic terms to breakdown this seemingly complex investment area. -
Convertible Bonds: An Introduction
Find out about the nuts and bolts, pros and cons of investing in bonds. -
Bond Call Features: Don't Get Caught Off Guard
Learn why early redemption occurs and how to avoid potential losses. -
Why do companies issue debt and bonds? Can't they just borrow from the bank?
Companies issue bonds to finance operations. Most companies can borrow from banks, but view direct borrowing from a bank as more restrictive and expensive than selling debt on the open market ... -
Bond Basics Tutorial
Investing in bonds - What are they, and do they belong in your portfolio? -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
6 Popular ETF Types For Your Portfolio
Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods.
Free Annual Reports