BOND

in masonry, systematic arrangement of bricks or other building units composing a wall or structure in such a way as to ensure its stability and strength. The various types of bond may also have a secondary, decorative function. Bonding may be achieved by overlapping alternate courses (rows or layers) in brickwork, by using metal ties, and by inserting units vertically so they join adjacent courses. A bond course of headers (units laid with their ends toward the face of the wall) can be used to bond exterior masonry to backing masonry. Headers used in this manner may also be called throughstones, or perpends. Units laid with their lengths parallel to the face of a wall are called stretchers. Among the more common types of bond are the English bond, in which bricks are laid in alternating courses of stretchers and headers; the Flemish, or Dutch, bond, which consists of headers and stretchers laid alternately within each course, each header being centred over the stretcher below it; and the American bond, in which only every fifth or sixth course consists of headers, the rest being stretchers. The American bond is the most common because it is so easily laid. The herringbone bond is a variety of raking bond in which units are laid at an angle of 45 to the direction of the row, instead of horizontally. Alternate courses lie in opposing directions, resulting in a zigzag pattern. Other types of bond include the blind, block-in-course, chain, cross, cross-and-English, diagonal, dog's tooth, English-cross, flying, in-and-out, plumb, ranging, running, and split. in finance, a loan contract issued by local, state, and national governments and by private corporations specifying an obligation to return borrowed funds. The borrower promises to pay interest on the debt when due (usually semiannually) at a stipulated percentage of the face value and to redeem the face value of the bond at maturity in legal tender. Bonds usually indicate a debt of substantial size and are issued in more formal fashion than promissory notes, ordinarily under seal. Contract terms are normally found in the indenture, an agreement between the borrower and a trustee acting on behalf of the bondholders. Interest on bonds is most often collectible through the presentation of numbered coupons, which the holder clips from the bond; a coupon is usually printed and attached to the bond for every interest date throughout the life of the bond. When bonds are sold, interest accrued since the previous interest-due date is added to the sale price. Most bonds are payable to the bearer and are thus easily negotiable, but it is usually possible to have the bond registered and thus made payable only to the named holder. The great majority of bonds are callable, meaning that the issuer can redeem them at his option, upon appropriate notice, well before maturity. Maturity, or due, dates for bonds normally run from 10 to 30 years. Government bonds may be backed by the taxing power of the government unit issuing the bond, or they may be revenue bonds, backed only by the revenue from the specific projectse.g., toll roads, airports, waterworksto which they are committed. Corporate bonds may be secured by a lien against real estate (mortgage bonds) or other property, such as equipment (equipment obligations) owned by the borrower. If the bond is unsecured, it is known as a debenture bond. Bond ratings are grades given to bonds based on the creditworthiness of the government, municipality, or corporation issuing them. The ratings are assigned by independent rating agencies (in the United States the largest are Standard & Poors and Moody's Investors Services), and they generally run from AAA to D. Bonds with ratings from AAA to BBB are regarded as investment grade i.e., suitable for purchase by banks and other fiduciary institutions. Bonds with ratings below BBB are considered junk, or high-yield, bonds; they are often issued by new or speculative companies. Although the risk of default for junk bonds is great, they offer higher rates of interest than more secure bonds.