baby bond

Baby Bond

Any bond issued with a par value less than $1,000.

Notes:

Baby bonds are usually issued by corporations that lack access to large institutional markets. These companies make their bonds more affordable to attract small investors.

See also: Bond, Par Value

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Baby bond

A bond with a par value of less than $1000.

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baby bond

A bond that has a principal amount under $1,000. Baby bonds may be issued by firms hoping to attract investors who do not have funds to purchase bonds with $1,000 principal. On occasion, bonds of less than $1,000 principal are issued as part of a corporate refunding. Because baby bonds are unusual, they may be more expensive to trade.