A type of security that functions more like a pawn ticket than a loan. Instead of regular payments of a portion of the loan, the bond issuer agrees to pay the full amount of the loan plus all due interest on or before a specific date in the future. The repayment date is referred to as the date when the bond reaches maturity.

In some cases, partial payment can be requested or received on a bond, but bonds structured in this way penalize bondholders by paying less interest when any part of the bond is redeemed before maturity. These are sometimes referred to as coupon bonds or strip bonds.

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