Finance glossary
Bond
Definition
A debt security where you loan money to an issuer for periodic interest payments.
A bond is a fixed-income instrument representing a loan from an investor to a borrower, typically a corporation or government. The issuer pays a coupon periodically and returns the principal at maturity. Bond prices and yields move inversely: when rates rise, existing bond prices fall.
In a sentence
He bought a 10-year government bond, collecting interest twice a year until it repaid his principal at maturity.
Get a word like this every morning
Word of the Day on your Home Screen, with quizzes and flashcards. Get the app →