Guaranteed Bond

Guaranteed Bond
A type of bond in which the interest and principal on the bond are guaranteed to be paid by a firm other than the issuer of the bond.

This guarantee limits the impact on bondholders if the issuer of the bond goes into default.

For example, in Canada, bonds issued by crown corporations are guaranteed by the federal government. If the issuer defaults on the debt obligation, the government is on the hook for the interest and principal payments.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • guaranteed bond — see bond 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • guaranteed bond — A type of bond for which a firm other than the issuer guarantees its interest and principal payments. Bloomberg Financial Dictionary * * * guaranteed bond UK US noun [C] (also guaranty bond) FINANCE ► a bond whose interest payments another… …   Financial and business terms

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  • guaranteed bond — noun : a bond on which payment of interest or principal or both are guaranteed by a corporation other than the issuer * * * a bond issued by a corporation in which payment of the principal, interest, or both is guaranteed by another corporation.… …   Useful english dictionary

  • guaranteed bond — a bond issued by a corporation in which payment of the principal, interest, or both is guaranteed by another corporation. [1960 65] * * * …   Universalium

  • bond — 1 n 1 a: a usu. formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure …   Law dictionary

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  • bond — Synonyms and related words: Fannie Mae, Federal Agency bond, Ginnie Mae, Oregon boat, Series E bond, Series H bond, accident insurance, accord, accouple, accumulate, actuary, addition, adherence, adhesion, adhesive, adjunct, adjustment bond,… …   Moby Thesaurus

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