Bond ((See Chapter 21 of the Vernimmen))

A bond is a negotiable debt security that is issued by corporations, municipalities, and governments. A bond pays a coupon (see coupon rate) and is redeemed in accordance with the prospectus of its issue. Bonds can carry other obligations on the part of the issuer. Bonds are the main medium-term market financing vehicles used by corporations, particularly in the five-to-ten year segment. There are various types of bonds such as convertible bonds, mandatory convertibles, exchangeable bonds, etc.