Bonded debt is a term that is often heard in the world of finance and economics. It is a type of debt that is issued by a government or a company and is secured by a bond. This type of debt is often used to fund large-scale projects, such as infrastructure development, and is considered a safe investment option for investors.
Definitions
Bonded debt is a type of debt that is secured by a bond. The bond is essentially a promise by the issuer to pay back the debt at a future date. The bond may be issued by a government, a company, or any other entity that needs to raise funds. Bonded debt is often considered a safe investment option because it is secured by the bond, which means that the issuer is legally obligated to pay back the debt.
Origin
The concept of bonded debt has been around for centuries. In medieval times, governments would issue bonds to finance wars or other large-scale projects. These bonds were often secured by the government’s assets, such as land or taxes. Over time, the concept of bonded debt evolved, and it is now used by governments and companies all over the world.
Meaning in different dictionaries
According to Merriam-Webster, bonded debt is “debt secured by a bond or bonds.” The Oxford English Dictionary defines it as “debt that is secured by a bond or bonds issued by a government or corporation.”
Associations
Bonded debt is often associated with large-scale projects, such as infrastructure development, that require a significant amount of funding. It is also associated with government and corporate finance, as these entities often issue bonds to raise funds.
Synonyms
Some synonyms for bonded debt include secured debt, secured bond, and secured loan.
Antonyms
Antonyms for bonded debt include unsecured debt, unsecured bond, and unsecured loan.
The same root words
The root words of bonded debt are bond and debt. Bond refers to a promise or agreement, while debt refers to money that is owed.
Example Sentences
- The government issued bonded debt to fund the construction of a new highway.
- The company raised funds through the issuance of bonded debt.
- Investors were attracted to the safety of the bonded debt, which was secured by a bond.