Income bond

Income bond,

Definition of Income bond:

  1. UK: National savings bond that offers monthly interest income.

  2. US: Bond which is sold flat (without accrued interest) and whose interest payment is not fixed but varies according to the issuers level of earnings. Income bonds are often issued by firms in dire straits in an attempt to quickly raise funds to avoid bankruptcy. See also flat bond.

Meaning of Income bond & Income bond Definition