annuity bond

The bonds are one of three types - fixed date bonds, drawing bonds, annuity bonds.

The annuity bonds are payable by semi-annual payments that pay part of the principal and accrued interest, over a period of time.

'Alternatively,' it went on, 'I could do you a very nice index-linked Lyonesse Provident Flexible Annuity Bond, which would provide access to capital as well as a guaranteed rate of income, paid monthly, with a very competitive tax position.