bond certificate
Học thuậtThân thiện
Definition
- Noun:
- A formal document representing a loan made by an investor to a borrower (typically a government or corporation). It is a certificate of debt that obligates the issuer to pay the holder a fixed amount of interest at regular intervals and to repay the principal amount on a specified maturity date.
Usage
- A bond certificate is a physical or electronic document that proves ownership of the debt.
- It is issued to raise capital for projects or operations.
- The key details on a bond certificate include the principal amount, the interest rate (coupon), the maturity date, and the issuer's name.
Examples
- The company issued new bond certificates to finance the construction of its new factory.
- Upon maturity, you must present the bond certificate to receive the final principal payment.
- He keeps his valuable bond certificates in a secure safety deposit box.
Advanced Usage
- Bearer bond certificate: A type of bond certificate that is owned by whoever holds the physical document. Interest and principal are paid to the bearer.
- Registered bond certificate: A bond certificate registered in the owner's name with the issuing authority. Payments are made directly to the registered owner.
Variants and Related Words
- Bond (n): The more common, general term for the debt instrument itself. A bond certificate is the documentary evidence of a bond.
- Debenture (n): A type of bond that is not secured by physical collateral.
- Coupon (n): The detachable part of a bond certificate that is presented to receive an interest payment.
Synonyms
- Debt instrument
- Fixed-income security
- Note (in a financial context)
Related Phrases
- To clip a coupon: A historical phrase referring to the act of detaching a coupon from a bond certificate to claim an interest payment.
- Bond indenture: The legal contract associated with a bond issue, of which the bond certificate is a key part.
Noun
- a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal