Bond

An instrument that pays a fixed amount of interest to the holder.

REMARKS

A bond is a debt instrument in which the issuer promises to pay to the bondholder principal and interest according to the terms and conditions of the bond.

Most bonds have a maturity date. Bonds are attractive to investors becasue they can usually be bought and sold easily. A certificate issued by the borrower as receipt for a loan longer than 12 months, indicating a rate of interest and date of repayment.