An appreciation bond is a type of bond that provides a return based on the appreciation of the underlying asset. This can be real estate, stocks, or other types of investment. There are several synonyms for appreciation bond, including growth bond, capital appreciation bond, and appreciation securities. These terms are often used interchangeably, but they all refer to the same type of bond that generates returns based on the appreciation of the underlying asset. Investors may choose an appreciation bond as a way to potentially earn higher returns than they would with a traditional fixed-income investment, but they also take on greater risk.