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  • An interest-bearing security that obligates the issuer to pay a specified amount of interest for a specified time, usually several years, and then repay the bondholder the face amount of the bond.

    CA Dept of Corporations - Cite This Source - This Definition
  • Bonds are debt securities issued by corporations and governments.

    Bonds are, in fact, loans that you and other investors make to the issuers in return for the promise of being paid interest, usually but not always at a fixed rate, over the loan term.

    The issuer also promises to repay the loan principal at maturity, on time and in full.

    Because most bonds pay interest on a regular basis, they are also described as fixed-income investments. While the term bond is used generically to describe all debt securities, bonds are specifically long-term investments, with maturities longer than ten years.

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