Government Bond
A Government Bond is a bond security issued by a government entity.
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- Example(s):
- See: Credit Rating Agency, Sovereign Debt Crisis.
References
2016
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/government_bond Retrieved:2016-10-5.
- A Government bond' is a bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date. Government bonds are usually denominated in the country's own currency. Another term similar to government bond is "sovereign bond". Technically any bond issued by a sovereign entity is a sovereign bond but sometimes the term is used to refer to bonds issued in a currency other than the sovereign's currency. If a government or sovereign is close to default on its debt the media often refer to this as a sovereign debt crisis.
The terms on which a government can sell bonds depend on how creditworthy the market considers it to be. International credit rating agencies will provide ratings for the bonds, but market participants will make up their own minds about this.
- A Government bond' is a bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date. Government bonds are usually denominated in the country's own currency. Another term similar to government bond is "sovereign bond". Technically any bond issued by a sovereign entity is a sovereign bond but sometimes the term is used to refer to bonds issued in a currency other than the sovereign's currency. If a government or sovereign is close to default on its debt the media often refer to this as a sovereign debt crisis.
- (City Council of Barnstable, 2016b) ⇒ Town of Barnstable. (2016). “Town of Barnstable Adopted Operating Budget - 2017."
- QUOTE: Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater that one year. (See Note).
2015
- http://investopedia.com/terms/g/government-bond.asp
- QUOTE: A government bond is a debt security issued by a government to support government spending. Federal government bonds in the United States include savings bonds, Treasury bonds and Treasury inflation-protected securities (TIPS). …
… Government bonds are considered risk-free and are traded in highly liquid markets. Certain government bonds restrict the dollar amount that may be purchased per calendar year. On the downside, government bonds return a typically low rate of return. Only select bonds offer protection on inflation, which may outpace the bond's interest rate. Also, government bonds have minimal capital gain opportunities. Government bond prices are tied to interest rates, so government bonds with fixed rates will incur interest rate risk as fluctuations in interest rates may cause a decline in value of the bond.
- QUOTE: A government bond is a debt security issued by a government to support government spending. Federal government bonds in the United States include savings bonds, Treasury bonds and Treasury inflation-protected securities (TIPS). …