adjustment bond
- A type of bond issued during a business reorganization to settle a previously existing obligation, where interest payments typically depend on the company's profits
- The struggling company issued an adjustment bond to meet its existing financial obligations.
- Investors should be aware that interest payments on an adjustment bond depend on the issuing company's earnings.
- During the reorganization, the business decided to issue an adjustment bond to ensure its prior obligations were met.
Provide Feedback
