Definition of Term Bond

term Bond is a bond issue that has its entire principal due on one date.

Applying "Term Bond" to Securities Exams:

Bonds unlike stock have a maturity date at which time the investor will have their principal returned to them and will cease being a creditor of the issuer. If a bond issue of $100,000,000 has a term maturity the issuer will repay the entire $100,000,000 back on a single specified date.

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