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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Adjustment Bond


An adjustment bond is sort of like an open marriage - the couple can choose to be faithful or not with no comeuppance either way. Similarly, an adjustment bond can choose to pay interest or not at will. If the responsible party for the bond punt a payment, they don't' go into default - they just keep rollin' over.