Income bond
Income bond is a bond that pays interest only if the interest is earned. These securities cannot bankrupt a company, but from an investor's standpoint, they are riskier than “regular” bonds.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Income bond. Pays interest only if the interest is earned. These securities cannot bankrupt a company, but from an investor's standpoint, they are riskier than “regular” bonds.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Income bond. A bond that pays interest only if it is earned.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
