The price of surety bonds ranges between 1 and 15 percent of the bonded amount. Therefore a bond worth $10,000 at a 5-percent rate costs the holder $500 annually. According to Lance Surety Bond Associates, Inc., bond applicants usually pay a lump sum for one year's worth of coverage.Know More
Because surety bonds are issued for a number of reasons, the cost of the bond is contingent on the on the bond payer's personal and business credit, industry experience, and personal and business finances. The reason for the bond is considered when determining cost, as well.
Lance Surety defines a surety bond as an agreement between a principal, obligee and surety that safeguards consumers and obligees from the costs related to a principal's misconduct, abuse or fraud. The most frequently secured bond in the United States is related to licensing. These types of bonds must be filed with a business license to make sure a bonded principal complies with the license regulations currently in force.Learn more about Investing
A U.S. savings bond is an investment backed by the government, explains Investopedia. Savings bonds are sold in set denominations and accrue interest up to 30 years after purchase, notes TreasuryDirect. Buyers redeem bonds for the original amount plus interest at any point at least one year after purchase.Full Answer >
Fidelity bonds are a sort of insurance used in business to protect against loss due to employee misconduct. Fidelity bonds cover situations such as embezzlement, fraud and theft, and they are generally purchased as additions to an organization's regular business insurance plan.Full Answer >
A bond is a debt security that an entity secures from an investor at a fixed interest rate, while a debenture is a debt security that is obtained by a creditworthy reputation rather than through a specific asset. Thus, the main difference between a debenture and a bond is that a debenture has no collateral.Full Answer >
A notarial bond is a special type of security taken in relation to movable property, according to Streetsdirectory.com. A general notarial bond gives a creditor preference over unsecured claims in respect of the residue of the insolvent estate. A special notary bond constitutes a form of real security over the assets involved and covered in the bond.Full Answer >