annuity bond

noun

Definitions of annuity bond

(also: annuity) an arrangement where an investor pays a lump sum to an issuer, who then continues to pay interest as long as the original investment is not repaid. In most cases, the issuer will not repay the original capital, but will pay a higher rate of interest than might usually be expected

The scheme provides a guaranteed income by utilizing a single premium annuity bond, which yields a high rate of interest.

an arrangement where an investor pays a lump sum to an issuer, who then repays this capital plus interest over the life of the arrangement

The JEM NSW Schools indexed annuity bond will pay principal and interest each quarter until it matures in 2031, when it will have repaid the capital.