Bond Financial Instrument

A Bond Financial Instrument is a bond security that is a tradable security.

• AKA: Tradable Loan-based Security.
• Context:
  • It can be sold by a Tradable Bond Seller (who is offering to pay the buyer interest - in exchange for money).
  • It can be bought by a Tradable Bond Buyer.
  • It can have a Tradable Bond Interest Rate that is based on Market Demand (if there's a lot of demand the interest rate should fall)
• Example(s)
  • a U.S. Government Bond, a German Government Bond.
  • an IBM Bond, ...
  • …
• Counter-Example(s):
  • a Private Placement Bond.
  • an Equity Financial Instrument.
• See: Government Bond, Corporate Bond, Bond Market.

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