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English definition of “income bond”

income bond

noun [C]
 
 
FINANCE
US a bond that pays interest based on how much profit is earned by the company that sold it: Income bonds give a firm that has gone through bankruptcy more leeway than a straight bond.
UK a bond that pays a regular amount of interest: We offer a six-year income bond offering an annual yield of 6%.
(Definition of income bond from the Cambridge Business English Dictionary © Cambridge University Press)
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