investing

bond

A fixed-income investment where an investor loans money to an entity (corporate or government) for a defined period at a fixed interest rate.

Example

"She bought government bonds to provide stable, low-risk income during retirement."

💡 Memory Tip

A bond BINDS the borrower to repay you with interest. Like a bond between friends — a promise.

Etymology

From Old English 'band' meaning 'something that binds' — a binding agreement to repay.

Common Misspellings

bondebonndbomd

Related Terms

yieldcouponmaturityfixed incometreasury

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