Definition

1. 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

1. 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