What Is A Term Bond?

1.	What Is A Term Bond?
Answer» TERM bonds are bonds from the same issue that share the same maturity dates. Term bonds that have a call FEATURE can be redeemed at an earlier date than the other issued bonds. A call feature, or call provision, is an agreement that bond issuers MAKE with buyers. This agreement is called an "indenture," which is the schedule and the price of redemptions, PLUS the maturity dates. Some corporate and municipal bonds are EXAMPLES of term bonds that have 10-year call features.

Answer»

TERM bonds are bonds from the same issue that share the same maturity dates. Term bonds that have a call FEATURE can be redeemed at an earlier date than the other issued bonds. A call feature, or call provision, is an agreement that bond issuers MAKE with buyers. This agreement is called an "indenture," which is the schedule and the price of redemptions, PLUS the maturity dates.
Some corporate and municipal bonds are EXAMPLES of term bonds that have 10-year call features.

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