Bonds are much easier to grade due to their larger area, lower prices and relatively thin market. This is due to the fact that the larger area is an easily viewed surface for exposing problems and handling. Lower prices and a thinner market allow for a simpler grading scale without the same intensity of financial pressure for splitting grades or overgrading that CSA notes may exhibit.
Most price guides list one or 2 grades Fine and Very Fine which are the major grades available for these documents. I expand this only a little to include XF bonds and problem bonds of which there are enough around to warrant a separate listing. The same discussion as it relates to condition Choice, Average and Scudzy can be applied to bonds, however, due to the fact that bonds did not circulate like currency, it is overkill.
Good to Very Good: Heavily worn and intact. It may have heavy creases and will have lots of wrinkling from handling. Stains, edge or crease tears and holes are permitted without net grade deduction. Heavily damaged bonds are worth less than this grade.
Fine: Worn but has some body or crispness left. It will have multiple folds and some wrinkling from handling. Minor stains, edge splits or crease tears, or hidden repairs may be found on these bonds. No pieces missing.
Very Fine: Obviously handled, but not significantly so. Vertical and/or horizontal folds will be present. This bond has a significant amount of body or crispness left. Not much handling wrinkling readily visible to the naked eye can be tolerated at this grade level. Minor holes, tears, edge splits and repairs cost about ½ of a grade. Anything that significantly stands out as a problem can cost a whole grade to Fine.
Extra Fine: Very lightly handled and nearly all of the crispness retained. Will have a few light folds or one or two moderate fold across the body of the bond. Any minor problem on the bond will cost ½ of a grade. Any readily visible distraction (stains, tears, ink problems, dirt) will cost a whole grade or more. XF bonds cannot have significant problems to speak of.