bond

bond

bond, in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years. Security is usually pledged against a bond; unsecured bonds are regarded as a long-term obligation on the capital of the issuing body. Some bonds are convertible upon maturity into the stock of the issuing company. One method used to retire bonds is the sinking fund; in such a case the issuing body buys back some of its bonds each year and holds them itself, applying the interest to the fund. The entire bond issue, most of which the firm has already acquired, is then retired on maturity. In the case of serial bonds, part of the issue is called in and paid for in full each year. Bonds were sold by the U.S. government to finance both World Wars and are still an important money-raising device. Government bonds are backed by the full faith and credit of the government issuing them, including its taxing power, and sometimes also by specifically designated security. Bonds are usually bought by those wishing conservative investment. A junk bond has a risky credit rating because it is issued by companies without an established earnings history or with a questionable credit history. Junk bonds have increasingly been used to help finance the purchase of companies, especially in leveraged buyouts.

Bibliography

See L. A. Jones, Bonds and Bond Securities (4th ed., 4 vol., 1935–50); T. R. Atkinson, Trends in Corporate Bond Quality (1967); A. Rabinowitz, Municipal Bond Finance and Administration (1969); H. D. Sherman and R. E. Schrager, Junk Bonds and Tender Offer Financing (1987); D. R. Nichols, The Personal Investor's Complete Book of Bonds (1988).

The Columbia Electronic Encyclopedia™ Copyright © 2022, Columbia University Press. Licensed from Columbia University Press. All rights reserved.

Bond

An arrangement of masonry units to provide strength, stability and in some cases beauty by setting a pattern of overlapping units on one another to increase the strength and to enhance the appearance, or by connecting them with metal ties.

basketweave bond

A checkerboard pattern of bricks, laid either horizontally and vertically, or on the diagonal.

bull header bond

A brick header unit which is laid on edge so that the end of the masonry unit is exposed vertically.

bull stretcher bond

Any stretcher which is laid on edge exposing its broad face horizontally.

chain bond

A masonry wall bond formed by horizontal metal bars or pieces of lumber built into a wall.

common bond

A bond in which every fifth or sixth course consists of headers, the other courses by stretchers

course

A horizontal row containing brick headers in a masonry structure.

cross bond

A brick bond with courses of Flemish bond with alternating courses of stretchers and with the joints of every other row of stretchers centered on a vertical line of headers.

diagonal bond

A type of raking bond in masonry walls, consisting of a header course with the bricks laid at a diagonal in the face of the wall.

dogtooth course

A stringcourse of bricks laid diagonally so that one corner projects beyond the face of the wall.

Dutch bond

Same as English cross bond or Flemish bond.

English bond

Brickwork that has alternate courses of headers and stretchers, forming a strong bond which is easy to lay.

Flemish bond

In brickwork, a bond in which each course consists of headers and stretchers laid alternately, each header is centered with respect to the stretcher above and the stretcher below it.

Flemish diagonal bond

A bond in which a course of alternate headers and stretchers is followed by a course of stretchers, resulting in a diagonal pattern.

header bond

A pattern of brickwork consisting entirely of headers; usually displaced by one-half the width of one header in the course above and below.

herringbone bond

A brick wall bond with concealed diagonal headers laid at right angles to each other in a herringbone pattern.

raking bond

A method of bricklaying in which the bricks are laid at an angle in the face of the wall; either diagonal bond or herringbone bond pattern.

running bond

Same as stretcher bond.

skintled bond

Brickwork laid so as to form a wall with an irregular face, produced by the rough appearance of the skintled joints.

soldier bond

A brick course laid vertically with the longer narrow face exposed.

stack bond

In brickwork, a patterned bond where the facing brick is laid with all vertical joints aligned; in stone veneer masonry, a pattern in which single units are set with continuous vertical and horizontal joints.

timber bond

Horizontal timbers once used as a bond for a brick wall.

Illustrated Dictionary of Architecture Copyright © 2012, 2002, 1998 by The McGraw-Hill Companies, Inc. All rights reserved

The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Bond

 

a security that conveys to its bearer the right to income computed at a fixed percentage rate. The entity issuing the bond assumes the obligation to redeem it over a prescribed period of time by paying income to the bearer of the bond, either through winnings allocated in special lottery drawings or through the reimbursement of coupons.

In the USSR, the right to issue bonds for domestic borrowing belongs solely to the state. The bond embodies a special form of obligation under civil law, one by which the state is the debtor and the citizen placing money at the disposal of the state is the creditor. The bonds currently in circulation are 3 percent lottery bonds, issued for a 20-year term in 1966. Income is paid to bondholders in the form of lottery winnings. The bonds are freely bought and sold by savings banks; their selling prices are set by the Ministry of Finance of the USSR, and they are purchased at face value. Various transactions relating to trusts, gifts, and bequests may also be carried out using bonds. Bonds may be presented for redemption throughout the period in which they are in force and during an additional grace period of 18 months. On expiration of this period, bonds that have not been presented for redemption lose their force. Bonds and cash winnings derived from them are tax exempt.

In the capitalist countries, bonds are issued both by joint-stock companies and by the state. As a form of paper security, bonds circulate freely through the capital market at a quoted price that is determined by their yield, by the general interest rate, and by overall factors of supply and demand. The state uses the capital mobilized through the sale of its bonds primarily to cover budget deficits that result from enormous nonproductive expenditures, above all expenditures on the arms race. The debt formed from the sale of bonds and the payment of interest is repaid primarily through taxes that are collected for the most part from the working people. The profits of joint-stock companies provide the source of the interest paid on their bonds.

O. I. LAVRUSHIN and A. IU. KABALKIN

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.

bond

[bänd]

(chemistry)

The strong attractive force that holds together atoms in molecules and crystalline salts. Also known as chemical bond.

(civil engineering)

A piece of building material that serves to unite or bond, such as an arrangement of masonry units.

(electricity)

The connection made by bonding electrically.

(engineering)

A wire rope that fixes loads to a crane hook.

Adhesion between cement or concrete and masonry or reinforcement.

(metallurgy)

Material added to molding sand to impart bond strength.

Junction of the base metal and filler metal, or the base metal beads, in a welded joint.

McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.

bond

1. A financial guarantee by a surety company that work will be completed as described in a contract. Also see bid bond, completion bond, contract bond, labor and material payment bond, performance bond, surety bond.

2.See roofing bond.

3. The adhesive strength that prevents delamination of the plies of a built-up roofing membrane.

4. The union of materials by their adhesive or cohesive properties.

5.See bond timber.

6. An arrangement of masonry units (headers and stretchers) laid in a pattern that provides a brick wall with strength, stability, and in some cases, beauty, depending on the pattern. For descriptions of various masonry bonds, see American bond, basket-weave bond, Chinese bond, common bond, Dutch bond, English bond, English Cross bond, English garden wall bond, Flemish bond, Flemish garden wall bond, flying bond, header bond, in-and-out bond, monk bond, raking stretcher bond, rat-trap bond, rowlock bond, running bond, silver-lock bond, stack bond, stretcher bond, Sussex bond, Yorkshire bond.

7. A low-resistance electric conductor which joins two adjacent metal parts or structures.

McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.

bond

1. Law a written acknowledgment of an obligation to pay a sum or to perform a contract

2. See chemical bond

3. in bond Commerce deposited in a bonded warehouse

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Bond

Edward. born 1934, British dramatist: his plays, including Saved (1965), Lear (1971), Restoration (1981), and In the Company of Men (1990), are noted for their violent imagery and socialist commitment

Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005