The
Definition Of

Bond/Debenture

Bond is a document by which a public limited company borrows the funds for a defined period of time at a variable or fixed interest rate.

According to L.J. Gitman,” a corporate bond is a certificate indicating that a corporation has borrowed a certain amount of money from an institution or an individual and promises to repay it in the future under clearly defined term.”

Share it:

More from this Section

  • FOREX
    FOREX is the foreign currencies and foreign-currency-denominated deposits offered by international banks to aid their customers who trade and travel abroad.
  • Open market purchase
    Open market purchase is a purchase of bonds by the Fed.
  • Clearing balances
    Clearing balances is the deposits held with the Federal Reserve banks by depository institutions to help clear checks for payment and collection and that allow the banks using Federal Reserve services to
  • Consortium bank
    Consortium bank refers to a banking joint venture, owned by two or more individual banks often of different nationalities. Consortium banks are formed ...
  • D/A (documents against acceptance)
    D/A (documents against acceptance) refer to shipping documents presented to a bank on a collection basis to be passed to the buyer
  • Risk Assessment
    Risk Assessment is a process used to identify and evaluate risks and their potential effect.
  • Real effective exchange rate index
    Real effective exchange rate index refers to an index that indicates how the weighted average purchasing power of the currency has changed relative to ...