TeachMeFinance.com - explain Income bond
Income bond -- A bond that is a lien on the net income
(earnings) of a corporation ; it receives interest only when
earned and is little better than preferred stock. All fixed
charges and obligatory payments (including taxes) must be
met before anything can be paid on an income bond, but it is
entitled to interest up to a specified amount before a dividend
can be paid on stock, either preferred or common.
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