Bond Certificate (Noun)
Meaning
A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued a bond certificate to raise funds for the expansion of its manufacturing unit.
- The investor purchased a bond certificate with a face value of $1,000 that matured in 10 years.
- To finance its new infrastructure project, the government issued a bond certificate with a high interest rate to attract investors.
- Some bond certificates offer tax benefits to investors, making them a popular choice for retirement savings.
- The treasury department issues bond certificates to manage the national debt and refinance existing loans.