Insured Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 892
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Definition: Insured Bond

Insured bonds are those in which the interest and principal payments are made by a different entity other than the issuer and the customer. This entity is mostly an insurance company with a high credit rating.

 

Since the risk of these bonds is lesser compared to the uninsured bonds, the returns or coupon yields are lower on insured bonds.


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