Bond Prospectus

A bond prospectus is a legal document issued by a company or government entity that provides detailed information about a bond offering. It includes essential details such as the terms of the bond (maturity date, interest rate, and payment schedule), the financial health of the issuer, the risks associated with the bond, and the rights of bondholders. The prospectus is intended to provide potential investors with all the information they need to make an informed decision about whether to invest in the bond.

Example

Before purchasing a corporate bond, an investor reviews the bond prospectus to understand the bond's terms, the company's financial stability, and the specific risks involved.