federal bond


Government issued debt instrument that is used to raise capital. Federal bonds are often used to finance federal projects and activities with investors receiving special tax incentives. The investor receives a promise from the federal government to repay the principal as well as any interest that has accrued by the maturity date of the bond.

Use federal bond in a sentence

You may want to take on a federal bond if you are looking for a nice risk free and safe investment.

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The federal bond was something of a debt instrument and I wondered how it was implemented and used each day.

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When his grandfather was growing up, they often bought federal bonds to help support the government, but to also have a interest bearing bond.

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