BONDED HOLDER Meaning and
Definition
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A bonded holder, also known as a bondholder, refers to an individual or entity that holds a bond issued by a corporation, government, or other types of entities. Bonds are financial instruments that represent a loan provided by the bondholder to the bond issuer. The bond issuer is typically a government entity or a corporation in need of funds for various purposes, such as financing infrastructure projects or business expansion.
Bonded holders are typically investors who purchase bonds in exchange for regular interest payments and the return of the principal amount upon maturity. The bondholder essentially becomes a creditor to the issuer. The interest payments, also known as coupon payments, are fixed and determined at the time of issuance. These payments are generally made semi-annually or annually, providing a stable income stream for the bonded holder.
The rights of a bonded holder include receiving timely interest payments, redemption of the bond at maturity, and potential remedies in case of default by the issuer. Bonded holders have a level of security on their investment through the issuer's commitment to repay the principal amount upon maturity. Additionally, bonds may be secured by collateral, such as specific assets or revenue streams of the issuer, providing an additional layer of protection for the bonded holders.
Overall, a bonded holder is an investor who purchases bonds to lend money to the issuer in exchange for regular interest payments and the eventual return of the principal amount.
Common Misspellings for BONDED HOLDER
- vonded holder
- nonded holder
- honded holder
- gonded holder
- binded holder
- bknded holder
- blnded holder
- bpnded holder
- b0nded holder
- b9nded holder
- bobded holder
- bomded holder
- bojded holder
- bohded holder
- bonsed holder
- bonxed holder
- bonced holder
- bonfed holder
- bonred holder
- boneed holder
Etymology of BONDED HOLDER
The etymology of the term "bonded holder" can be broken down as follows:
1. Bond: The word "bond" originates from the Middle English word "bonde", which comes from the Old English word "bonda". It originally referred to a physical restraint or tie. In the context of finance, it started being used in the mid-16th century to refer to a formal agreement or contract by which a person lends money to a government or a company and receives periodic interest payments until the borrowed amount is repaid.
2. Holder: The term "holder" comes from the Middle English word "holdere", which also means someone who holds or possesses something. It can be traced back to the Old English word "healdan", meaning "to hold" or "to keep".
Therefore, "bonded holder" refers to someone who holds a bond.
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