Glossary of Municipal Securities Terms

BOND

(1) The written evidence of debt, which upon presentation entitles the bondholder or owner to a fixed sum of money plus interest. The debt bears a stated rate(s) of interest or states a formula for determining that rate and matures on a date certain. (2) For purposes of computations made on a “per bond” basis, a $1,000 increment of a security (no matter what the actual denominations are) (e.g. 10 bonds refers to a $10,000 investment). (3) Generally refers to debt securities with a maturity of greater than the short-term range. See: MUNICIPAL SECURITIES.

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