Definition: Bonds and debentures

Category: SNA

Bonds and debentures are securities that give the holders the unconditional right to fixed payments or contractually determined variable payments, that is, the earning of interest is not dependent on earnings of the debtors (SNA 2008, § 11.64).

Bonds and debentures are long-term securities that give the holders the unconditional right to one or both of: (a) a fixed or contractually determined variable money income in the form of coupon payments, i.e. payment of interest is not dependent on earnings of the debtors, (b) a stated fixed sum as a repayment of principal on a specified date or dates when the security is redeemed (SNA 1993, § 7.100 and 11.74). http://ec.europa.eu/eurostat/ramon/statmanuals/files/SNA2008.pdf United Nations, "System of National Accounts (SNA) 1993", United Nations, New York, 1993