Guaranteed-bond meaning

A bond that is issued by a subsidiary but guaranteed by the parent company. Guaranteed bonds, which are most common in the U.K., are usually issued by financial institutions and mature in one to ten years. The investment is based on an individual purchasing a policy whose value is linked to the performance of one or more of the world’s stock markets. Guaranteed bonds provide a fixed income or a predetermined amount of growth for the set period of the bond.
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