Government guaranteed bonds are medium to long term bonds (securities) issued by government agencies and in some cases by PSU (public sector undertaking). The interest and the principal in such instruments is guaranteed by the Central Government or the State Government.

Since most state government guarantees mean nothing, largely people buy these bonds because there is an unwritten law that ultimately the central government  will bail them out!

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.