TN 4 (03-92)
SI 01140.250 Municipal, Corporate and Government Bonds
A bond is a written obligation to pay a sum of money at a specified future date. Bonds are negotiable and transferable.
2. Municipal Bond
A municipal bond is the obligation of a State or a locality (county, city, town,village or special purpose authority such as a school district).
3. Corporate Bond
A corporate bond is the obligation of a private corporation.
4. Government Bond
A government bond, as distinct from a U.S. Savings Bond (see SI 01140.240), is a transferable obligation issued or backed by the Federal Government.
B. Operating policy
Municipal, corporate, and government bonds are negotiable and transferable. Therefore, their value as a resource is their CMV. Their redemption value, available only at maturity, is immaterial.
C. Development and documentation
Development and documentation instructions for stocks (SI 01140.220) also apply to bonds.