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Third-party fidelity bonds protect businesses against intentionally wrongful acts committed by people working for them on a contract basis (e.g., consultants or independent contractors). In business partnerships, it is the responsibility of the business working as a contractor or subcontractor to carry third-party fidelity bond coverage, though ...
The most common types of bonds include municipal bonds and corporate bonds. The bond is a debt security, under which the issuer owes the holders a debt and (depending on the terms of the bond) is obliged to pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date. [42]
Usually, a surety bond or surety is a promise by a person or company (a surety or guarantor) to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to ...
Fidelity is the quality of faithfulness or loyalty. Its original meaning regarded duty in a broader sense than the related concept of fealty. Both derive from the Latin word fidēlis, meaning "faithful or loyal". In the City of London financial markets it has traditionally been used in the sense encompassed in the motto "my word is my bond".
Bond funds can be sub-classified according to: The specific types of bonds owned (such as high-yield or junk bonds, investment-grade corporate bonds, government bonds or municipal bonds) The maturity of the bonds held (i.e., short-, intermediate- or long-term) The country of issuance of the bonds (such as the U.S., emerging market or global)
The coupon (of a bond) is the annual interest that the issuer must pay, expressed as a percentage of the principal. The maturity is the end of the bond, the date that the issuer must return the principal. The issue is another term for the bond itself. The indenture, in some cases, is the contract that states all of the terms of the bond.
Short-term vs. long-term bonds: Key differences. If you’re new to investing in bonds, it’s important to understand the role short-term and long-term bonds can play in your portfolio.
The Fidelity Investment Grade Bond Fund is an actively managed fund that seeks to provide a high level of current income. The fund typically invests at least 80 percent of its assets in all types ...