Guaranteed Bond
A type of bond in which the interest and principal on the bond are guaranteed to be paid by a firm other than the issuer of the bond.

Investopedia Says:
This guarantee limits the impact on bondholders if the issuer of the bond goes into default.

For example, in Canada, bonds issued by crown corporations are guaranteed by the federal government. If the issuer defaults on the debt obligation, the government is on the hook for the interest and principal payments.

Related Terms:
Bond
Crown Corporation
Debt
Default
Guaranteed Investment Fund - GIF
Interest
Issuer
Principal
Secured Debt

• Phillips Curve
• Phishing
• PHP
• Physical Asset
• Physical Delivery
• Pickup
• Pick-Up Tax
• Pig
• Piggyback Mortgage
• Piggy Back Registration
• Piggyback Registration Rights
• Piggyback Warrants
• Pigovian Tax
• Pink Sheets
• Pink Sheets
• Pinning the Strike
• Pin Risk
• Pip
• Pipeline
• Pipeline Theory
• Pit
• Pitchbook
• Pivot
• Pivot Point
• PKR