"Government investment" redirects here. For investment by governments, see Government spending.
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Government bond" – news · newspapers · books · scholar · JSTOR(July 2008) (Learn how and when to remove this template message)
A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments, and to repay the face value on the maturity date.
For example, a bondholder invests $20,000, called face value or principal, into a 10-year government bond with a 10% annual coupon; the government would pay the bondholder 10% interest ($2000 in this case) each year and repay the $20,000 original face value at the date of maturity (i.e. after 10 years).
Government bonds can be denominated in a foreign currency or the government's domestic currency. Countries with less stable economies tend to denominate their bonds in the currency of a country with a more stable economy (i.e. a hard currency). All bonds carry default risk; that is, the possibility that the government will be unable to pay bondholders. Bonds from countries with less stable economies are usually considered of higher risk. International credit rating agencies provide ratings for each country's bonds. Bondholders generally demand higher yields from riskier bonds. For instance, on May 24, 2016, 10-year government bonds issued by the Canadian government offered a yield of 1.34%, while 10-year government bonds issued by the Brazilian government offered a yield of 12.84%.
Governments close to a default are sometimes referred to as being in a sovereign debt crisis.[1][2]
^"What is Sovereign Debt". Archived from the original on 2020-07-02. Retrieved 2014-08-02.
^"Portugal sovereign debt crisis". Archived from the original on 2014-08-10. Retrieved 2014-08-02.
A governmentbond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic...
TRACE. An important part of the bond market is the governmentbond market, because of its size and liquidity. Government bonds are often used to compare...
A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers & acquisitions...
The FTSE World GovernmentBond Index (WGBI) is a market capitalization weighted bond index consisting of the governmentbond markets of the multiple countries...
James Bond is a fictional character created by British novelist Ian Fleming in 1953. A British secret agent working for MI6 under the codename 007, Bond has...
annual coupon divided by its current market price. Yield to maturity is a bond's expected internal rate of return, assuming it will be held to maturity,...
The James Bond series focuses on the titular character, a fictional British Secret Service agent created in 1953 by writer Ian Fleming, who featured him...
A Green bond (also known as climate bond) is a fixed-income financial instruments (bond) which is used to fund projects that have positive environmental...
convertible bond, convertible note, or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the...
other currencies (0.8%). Moody’s Investors Service upgraded India's governmentbond rating from Baa3 to Baa2 on 16 November 2017. In the announcement,...
with Aetna Property and Casualty, Inc.), acquired Salomon Brothers, a major bond dealer and bulge bracket investment bank, in a $9 billion (~$15.9 billion...
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts...
State and Local Government Series (SLGS), purchaseable only with the proceeds of state and municipal bond sales; and the Government Account Series, purchased...
In finance, bond convexity is a measure of the non-linear relationship of bond prices to changes in interest rates, and is defined as the second derivative...
bond (also called redeemable bond) is a type of bond (debt security) that allows the issuer of the bond to retain the privilege of redeeming the bond...
In investment, the bond credit rating represents the credit worthiness of corporate or government bonds. It is not the same as an individual's credit score...
A perpetual bond, also known colloquially as a perpetual or perp, is a bond with no maturity date, therefore allowing it to be treated as equity, not...
Introduction of the Scheme of Electoral Bond" (PDF). dea.gov.in. Department of Economic Affairs, Ministry of Finance, Government of India. Retrieved 4 October 2023...
Bond valuation is the process by which an investor arrives at an estimate of the theoretical fair value, or intrinsic worth, of a bond. As with any security...
be applied to the governmentbond market analogously. Just like banks that lend long-term while borrowing short-term, governments have highly illiquid...
A bond vigilante is a bond market investor who protests against monetary or fiscal policies considered inflationary by selling bonds, thus increasing yields...
and Growth Pact) level. Government finance: Debt crisis Governmentbond Municipal bondGovernment budget deficit Government spending Generational accounting...