All definitions

Bond

A bond is a form of debt which is issued by a government or corporation. A bond is issued with a coupon rate, which is the amount of interest which will be repaid (typically annually) until the bond matures. Bonds are traded on secondary markets, and their value can increase and decrease, just like other investments. Bonds issued by large governments such as the USA are considered safe investments, as they are very unlikely to default on the payments. The return from bonds is typically less than from stocks. A personal investor will typically have a portfolio consisting of both stocks and bonds.