The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

What is GOVERNMENT BOND

A DEBT instrument issued by a governmental authority as a funding mechanism. Government bonds are generally issued on a fixed or floating rate, COUPON BEARING, basis, with maturities extending from 1 to 30 years; those within the 1 to 10 year sector may be referred to as government notes. Some countries also feature INFLATION LINKED SECURITIES within their government issuance programs. Government bonds issued by industrialized nations are generally quite LIQUID (and may be very liquid in the BENCHMARK) and extremely creditworthy, with virtually no risk of DEFAULT. See also GOVERNMENT BILL.

Disclaimer

Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.