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Define long-term bond

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What is a long-term bond? What are some examples of long-term bonds?

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Solution Summary

This solution discusses the business and financial concept of "long-term bonds" and provides a thorough explanation of the topic.

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A long-term bond is a bond that has a maturity period of 15 years or more. Bonds enable the issuer to finance long-term investments with external funds. Bond holders are considered to be lenders to the issuing company. Two things that are very important when speaking of long-term bonds are interest rate and maturity. When a company issues a bond this means that they plan to pay the interest back to their investors at a ...

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