TeachMeFinance.com - explain Guaranteed bond
Guaranteed bond -- A bond the payment of the principal of
and interest on which is guaranteed by another. A railroad
which leases another railroad usually guarantees the principal
of and interest on the bonds (and often the dividends on the
stock) of the leased road.
Guarantee bond -- A bond given by a guarantor or surety, under which the guarantor or surety holds himself responsible for the performance of certain specified duties by the person foi whose fidelity he vouches. A bond of this kind is frequently given when the person whose fidelity is vouched for occupies a position of great responsibility or trust.
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