STRAIGHT BOND Definition

Bookmark and Share

STRAIGHT BOND is the most common debt security. All other bond types are variations of, or additions to standard straight bond features. An investor pays a single capital sum to receive interest payments, called coupons, until a fixed maturity date when the last coupon is accompanied by redemption of the bonds face value. The coupon is simply a fixed rate of interest - paid annually or semi-annually - on the principal sum or face/par value. The debt is of fixed maturity - the principal redemption date. The maximum term is 30 years, but 7-10 years is most common.

Learn new Accounting Terms

VET, VETTED, VETTING is to make a careful and critical examination of someone or something, e.g. a person prior to employment.

SPOILAGE is materials wasted or spoiled in the production process. See also ABNORMAL SPOILAGE and NORMAL SPOILAGE.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.