Secured Bond

[si-KYURD bond]

What is the definition of Secured Bond?
A bond that provides bondholders with a pledge of specific company assets as collateral to guarantee the repayment of the principal and interest.
Using Secured Bond in an Example

A corporation issues secured bonds to raise funds for expanding its operations. These bonds are backed by the company's manufacturing facilities, ensuring that if the company fails to meet its payment obligations, the bondholders can claim the secured assets to recover their investments.

Using Secured Bond in a sentence

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Related Terms

Surviving Spouse

A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.

Swap

A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.

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