guaranteed bond

(redirected from Guaranteed Income Bond)

Guaranteed bond

A type of bond for which a firm other than the issuer guarantees its interest and principal payments.

Guaranteed Bond

A bond on which payment is guaranteed by a third party such as a government or a bond insurance company. A guaranteed bond is doubly protected because it is payment can come either from the issuer or from the third party in case the issuer defaults. As such, a guaranteed bond is low risk and therefore usually carries a lower coupon rate than an uninsured bond or other bond without a guarantee. A bond guaranteed by the U.S. government is generally thought to be riskless.

guaranteed bond

A bond that is issued by one firm and guaranteed as to interest and principal by one or more other firms. Such bonds, often resulting from joint ventures, are particularly common among railroads that lease tracks to and from each another.
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The group is also launching two new bonds from tomorrow - the Guaranteed Income Bond, under which customers will be paid interest monthly, and the Guaranteed Growth Bond, under which people receive it at the end of their investment term.
Q I AM now a non-tax payer and for four years have held a guaranteed income bond which has another 12 months to go.
Q: I have a pensioners guaranteed income bond form National Savings which will mature shortly and pay me pounds 10,000.
Q I TOOK out a guaranteed Income bond five years ago for pounds 5,000 which has just finished.
We had a cheque from one client for pounds 200,000 this morning - to go straight into a Guaranteed Income Bond.''
``For income, they should still try a Guaranteed Income Bond, but the National Savings Equity Bond is potentially very good indeed for growth.''
Q I WANT to re-invest a five-year guaranteed income bond that has matured.
The Guaranteed Income Bond offers a monthly income option, while the Guaranteed Growth Bond pays interest at the end of the term.
Financial advisor Baronworth Investment Services has an 18 month Guaranteed Income Bond promising 8.78pc gross, 7.03pc net ( but that's over the full term of the bond, rather than annually.
As an example, a guaranteed income bond would produce 4.75 per cent net of basic rate tax (about pounds 178 per month), and you would get a full return of capital at the end of the chosen term.

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