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Se a bond represents debt – its holder is a creditor of the corporation and not a part owner as is the shareholder. The word “bond” is sometimes used more broadly to refer also to unsecured debt instruments. [Definitions used here are generally from Black’s 6th] 1) Bond supporting credit authorizations This bond is the debt side of the implied contract that resulted when your grandparents took all their gold to the Federal Reserve Banks by May 1, 1933. A bond is always evidence of a deb.
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