Template:Bond - layman: Difference between revisions

Template:Bond - layman (view source)

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 [[File:Bond certificate.jpg|thumb|A bond certificate with [[coupon]]s on the right]]
-A [[bond]] (also called a “[[note]]” or an “[[MTN]]”) is a form of [[loan]]. It is like an [[IOU]] from a company or government. Instead of taking one big [[loan]] from a [[bank]], a company issues lots of little loans, in the form of bonds to investors. To buy a bond is to lend money to the issuing company, who must repay that money by “redeeming”  the bond its stated [[maturity date]]. In the good old days, bonds were security-printed certificates with the loan [[terms and conditions]] printed on them.
+A [[bond]] (also called a “[[note]]”, “[[MTN]]” or a “[[debt security]]”) is a form of [[loan]]. It is like an [[IOU]] from a company or a government. Instead of taking one big [[loan]] from a [[bank]], a company issues lots of little loans, in the form of bonds to investors. To buy a bond is to lend money to the issuing company, who must repay that money by “redeeming”  the bond its stated [[maturity date]]. In the good old days, bonds were security-printed certificates with the loan [[terms and conditions]] printed on them.
 '''Repayment to [[bearer]]''': The company will pay principal and interest to the “bearer” of a bond — that is, whoever holds it, and who turns up on the correct payment date and presents the bond to the issuer for redemption.