A government bond is a bond issued by a national government, generally promising to pay a certain amount (the face value) on a certain date, as well as periodic interest payments. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country. Government bonds are usually denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds, although the term "sovereign bond" may also refer to bonds issued in a country's own currency.
Read more about Government Bond: History
Famous quotes containing the words government and/or bond:
“... it were impossible for a people to be more completely identified with their government than are the Americans. In considering it, they seem to feel, “It is ours, we have created it, and we support it; it exists for our protection and service; it lives as the breath of our mouths; and, while it answers the ends for which we decreed it, so long shall it stand, and nought shall prevail against it.””
—Frances Wright (1795–1852)
“Camillo. Prosperity’s the very bond of love,
Whose fresh complexion and whose heart together
Affliction alters.
Perdita. One of these is true:
I think affliction may subdue the cheek,
But not take in the mind.”
—William Shakespeare (1564–1616)