Verbull Word of the day
Finance glossary

Bullet Bond

Fixed Income · intermediate
Definition

A bond that repays its entire principal in one lump sum at maturity.

A bullet bond pays regular interest, or coupons, throughout its life but returns the full face value in a single payment on the maturity date rather than amortizing the principal over time. This structure gives investors a predictable, single repayment date and is the most common form of corporate and government bond.

In a sentence

The company issued a ten-year bullet bond, meaning bondholders get all their principal back at once when it matures.

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