Income bond

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Income bond is a bond that pays interest only if the interest is earned. These securities cannot bankrupt a company, but from an investor's standpoint, they are riskier than “regular” bonds.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Income bond. Pays interest only if the interest is earned. These securities cannot bankrupt a company, but from an investor's standpoint, they are riskier than “regular” bonds.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Income bond. A bond that pays interest only if it is earned.

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