A joint bond is a bond that has an issuer as well as at least two guarantors. A joint bond is also called a joint-and-several bond. The purpose of including more than two guarantors is that the shared responsibility lowers the borrowing cost, risks and the return on investment ROI.
*A joint bond is a bond where two or more guarantors join hands to repay interests and principal.
*A joint bond is usually issued to small companies to provide them monetary support for their operational activities.
* Nowadays, joint bonds are also utilised by young couples or friends to buy property. The first thing to keep in mind before signing a joint bond is that all the guarantors are equally liable to the bond. If one fails to repay the bond, then the other must fulfil his responsibilities.