adjustment bond

Definition of "adjustment bond"
  1. 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
How to use "adjustment bond" in a sentence
  1. The struggling company issued an adjustment bond to meet its existing financial obligations.
  2. Investors should be aware that interest payments on an adjustment bond depend on the issuing company's earnings.
  3. During the reorganization, the business decided to issue an adjustment bond to ensure its prior obligations were met.

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