DEFENCE BOND Meaning and
Definition
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A defense bond refers to a financial instrument issued by a government to gather funds from its citizens in order to support national defense initiatives. It serves as a means for the general public to contribute directly to strengthening the military capabilities and safeguarding the security and defense of a country.
The defense bond typically has a fixed maturity period, during which the bondholder receives periodic interest payments at a predetermined rate. At the time of maturity, the bondholder is repaid the original face value of the bond. The funds generated through the issuance of defense bonds are primarily allocated towards enhancing military infrastructure, developing advanced weaponry systems, and financing research and development in defense technologies.
Defense bonds offer a way for individuals to financially contribute to their country's security efforts, while also providing them with an opportunity to earn a return on their investment. Furthermore, investing in defense bonds is often seen as a patriotic act, as citizens join hands with the government in ensuring the nation's defense capabilities.
These bonds are typically considered secure investments due to the government's backing and are often perceived as low-risk instruments. They may be offered through various financial institutions or directly by the government, allowing for widespread participation from both institutional investors and the general public.
In summary, defense bonds are financial instruments that governments issue to collect funds from citizens, with the aim of strengthening national defense capabilities. They offer investors a secure means of contributing to their country's defense initiatives and often provide a modest return on investment.
Common Misspellings for DEFENCE BOND
- sefence bond
- xefence bond
- cefence bond
- fefence bond
- refence bond
- eefence bond
- dwfence bond
- dsfence bond
- ddfence bond
- drfence bond
- d4fence bond
- d3fence bond
- dedence bond
- decence bond
- devence bond
- degence bond
- detence bond
- derence bond
- defwnce bond
- defsnce bond
Etymology of DEFENCE BOND
The etymology of the word "defence bond" can be broken down into two components: "defence" and "bond".
1. Defence: The word "defence" is derived from the Old French word "defense" meaning "protection, resistance". It can be traced back to the Latin word "defensa" meaning "a warding off". The term "defence" is commonly used to describe an action or system put in place to protect, safeguard, or resist against something.
2. Bond: The word "bond" comes from the Old English word "bonda" meaning "husbandman, householder". It is related to the Old Norse word "bonde" and the Middle High German word "būr" both meaning "peasant, farmer". Over time, "bond" evolved to refer to a binding agreement or a connection between entities.
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